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PCPs hectic

Trading in PCPs — interestrate futures — was hectic yesterday as interest rates rose a good one percentage point in the physical market. More than 90 lots were traded in April-delivery contracts on their first day of trading. The PCP indices dived inversely to the physical market’s rise.

Dr Brent Layton, of Marshall Futures, said that the interest-rate market was under pressure with news of the S4OOM stock tender this month and another for ?350M next month when there were to have been no tenders in the first quarter of the year. Despite this, call interest rates were about 18 or 19 per cent yesterday, and there was one instance late in the day of a deal at 11 per cent. The United States dollar futures contracts were more active. They ranged widely during the day and closed about 335 points (about $1650) down on the Wednesday close.

The firming kiwi dollar was behind the contract’s decline, and that of the wool contracts which were down another 1c to 2c. Dr Layton said that if the kiwi dollar continued to firm the wool sales today and tomorrow could have a “jump down” in prices. Details of yesterday’s futures trading:

Open position as at Jan. 15: Feb. 304, Mar. 957, Jun. 94, Sep. 72, Dec. 17, total 1444 (down 69).

SUS CONTRACTS Mth Open H/L Last Vol Jan. 1.9620 .9775/525 .9525 43 Feb. 1.9875 .9890/715 .9715 5 Contracts traded: 48

Open position as at Jan. 15: Jan. 439, Feb. 19, Mar. 1, Jun. 1, Sep. 1, total 461 (up 18).

COMMERCIAL BILLS Mth Open H/L Last Vol Feb. 7690 690/570 580 141 Mar. 7655 655/560 570 181 Apr. 7775 775/670 670 92 Jun. 7995 995/995 995 1 Sep. 7995 Contracts 995/995 traded: 425 995 10

WOOL FUTURES Mth Open H/L Last Vol May 503 503/502 502 6 Aug. 514 515/514 515 7 Oct. 515 515/514 515 5 Dec. 515 515/514 515 5 Jan. .516 516/515 515 6 Mar. 523 523/523 523 1 May doi 527 527/527 527 6 itracts traded: 36 Open position as at Jan. 15: Jan. 18, Mar. 224, May 388, Aug. 216, Oct. 209, Dec. 224, Jan. 199, Mar. 293, May 177, total 1948 (up M).

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19860117.2.83.6

Bibliographic details

Press, 17 January 1986, Page 8

Word Count
368

PCPs hectic Press, 17 January 1986, Page 8

PCPs hectic Press, 17 January 1986, Page 8