Rates little changed

Press, 22 July 1986, Page 38

Rates little changed

PA Wellington Money market interest rates were little changed yesterday, in quiet trading.

Dealers said most investors were awaiting the Budget and were looking for more details on the projected deficit and the accompanying State borrowing programme. Money trading was accordingly thin and in a narrow range. Government stock

quotes yesterday were three years 16.75 per cent

(16.8 per cent on Friday), five years 16.6 per cent (unchanged) and 10 years 16 per cent (unchanged). All three stock rates are virtually unchanged on rates set at the $5OO million tender held on July 10. The Budget will be presented on July 31, a week before the August tender. Dealers said overseas interest in New Zealand stock was virtually nil at

present, but said some overseas investment might be needed if the $1 billion planned for the

next two tenders was to be sold at low rates.

For the moment, rates did not seem likely to rise too far as buying pressure had emerged whenever the five-year stock approached 16.7 per cent. Prime 90-day commercial bills firmed in light trading to 16.35 per cent (16.2 per cent on Friday), while on-call money was virtually unchanged at 15.3 per cent (15.25 per cent).

The Reserve Bank did not hold open market money operations yesterday.