FUTURES PCP index sliding
The futures market yesterday was picking short-term interest rates would rise next month. PCP (interest-rate) futures contracts deliverable in February fell about 1 per cent from the close of the exchange on Monday to yesterday’s close.
The PCP index moves inversely to anticipated interest rates.
The market is anticipating short-term interest rates will be 23.05 per cent in March, because of the tax take.
The trend of the PCPs was down, reflecting increasing feelings that interest would become dearer, said Mr Guy Spooner, of Marshall Futures. Wool futures were quiet yesterday, and prices were down about Ic.
This is a very heavy week for wool selling, with sales at Christchurch and Wellington on Thursday, and Christchurch and Auckland on Friday. About 100,000 bales will be auctioned.
Despite this, wool futures firmed about 1c yesterday. Mr Spooner, however, expects the heavy volume of wool. on the market to put pressure on prices later in the week, and says he would not be surprised if wool futures dropped up to sc. The U.S, dollar contract was
extremely quiet, with only 62 lots traded. Of these, 60 lots were traded by one northern broker. The calm reflected the steadiness of the N.Z. dollar on the foreign-exchange market. Details of yesterday’s trading: JUS CONTRACTS Mth Open H/L Last Vol Jan 1.9850 . .9850/831 .9831 62 Contracts traded: 62 Open positions at January 13: Jan 366, Feb 14, Mar 1, Jun 1, Sep 1, total 383 (up 23). COMMERCIAL BILLS Mth Open H/L Last Vol Jan 7840 840/785 785 56 Feb 7800 800/710 710 133 Mar 7710 735/695 695 149 Contracts traded: 338. Open positions at January 13: Jan 184, Feb 327, Mar 927, Jun 92, Sep 74, Dec 17, total 1621 (down 167).
May 527 527/527 527 3 Contracts traded: 32. Open positions at January 13: Jan 18, Mar 224, May 386, Aug 214, Oct 214, Dec 224, Jan 189, Mar 288, May 177, total 1934 (down 10).
WOOL FUTURES Mth Open H/L Last Vol May 506 506/506 506 1 Aug 515 516/515 516 5 Oct 516 516/516 516 4 Dec 514 516/514 516 4 Jan 516 518/516 518 3 Mar 522 525/522 525 13
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Press, 15 January 1986, Page 28
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364FUTURES PCP index sliding Press, 15 January 1986, Page 28
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