Bill rates rise

Press, 7 August 1985, Page 36

Bill rates rise

PA W’ellington Treasury bill rates rose yesterday and the Government did not sell its full offering of $75 million in long-dated (210-day) bills. Dealers bid only 568.05 M for the S7SM offered, but only $37.05M was accepted because of the high rates offered. The weighted average interest rate on these bills was 24.609 per cent, up from 22.567 per cent on 217-day bills last week. Dealers bid up to 27.25 per cent but the top bid accepted was at 25.38 per cent. To help balance the undersale of long-dated bills the Government accepted a 50 per cent oversubscription on its S2SM offer of 56-day bills and sold $37.5M worth of the shorter-dated bills. The weighted average yield on these was 23.293 per cent, as against 21.552 per cent for 21day bills last week and 22.094 per cent when 56-day bills were last sold a month ago. Dealers bid SBIM for the original S2SM offering of 56-day bills. Details: 56-day bills: Offered, S2SM; bid, $81M; accepted, $37.5M; successful yields, 22.54 per cent to 23.5 per cent; weighted average, 23.293 per cent; unsuccessful bids, 23.5 per cent to 26 per cent. 210-day bills: Offered, $75 million; bid, $68.05 million; accepted, $37.05 million; successful yields, 23.5 per cent to 25.38 per cent; weighted average, 24.609 per cent; unsuccessful bids, 25.48 per cent to 27.25 per cent.