More stock tenders

Press, 6 December 1985, Page 20

More stock tenders

By

Martin Freeth

in Wellington

The Government’s borrowing programme for the remainder of this fiscal year will include two further tenders of Government Stock, to raise $6OO million. This will bring to $2.5 billion the total raised during the year, assuming the Governments’ budget deficit to turn out at $1.6 billion. The Minister of Finance, Mr Douglas, released the figures yesterday, with forecasts of Government liquidity injections into the economy during the remainder of the year, to end in March. The stock tenders will be held next Thursday and on January 23, and will be for $3OO million each. The first of these will offer $lOO

million in stock of three different maturity dates. Money market reaction to the announcement was negliible, and dealers said the final part of the programme had already been well anticipated. Mr Douglas said allowance had been made in the tenders for an extra injection of liquidity through the transfer of Dairy Industry Reserve Funds to the private sector, which might occur before March. “Should this not prove to be the case, then Reserve Bank open market operations would be adjusted accordingly” the Minister said. Bank operations would also cover any other liquidity influences that emerged.