Rates rise

Press, 23 July 1986, Page 41

Rates rise

PA Wellington Overseas investors could be attracted back to tbe New Zealand money market if interest rates continue to rise, money dealers said. Overseas buying of New Zealand bonds has been very limited lately and with local buying also small, rates have tended to edge up slowly in thin trading. “Interest rates continue to rise ahead of the Budget, which may spell out the deficit situation in more detail, but we don’t see rates rising much further,” one dealer said.

i Yesterday’s government j stock quotes were three i years 16.8 per cent (16.75 r per cent on Monday), five ; years 16.65 per cent (16.6 r per cent) and 10 years 16.05 per cent (16 per r cent). l Prime 90-day commerI cial bills were at 16.55 per i cent (16.35 per cent) 1 while on-call money was i at 15.9 per cent (15.3 per cent). > The Reserve Bank eased the short-term mart ket by injecting $25 i million by way of sellback t deals secured by 16-day stock. Yields were 15 to 15.5 per cent.