T-bills firmer

Press, 30 July 1986, Page 44

T-bills firmer

PA Wellington Interest rates on Treasury bills firmed at yesterday’s $lOO million tender. The rates saw the weighted average interest for 56-day bills rise to 16.047 per cent, compared with 15.752 per cent for 42-day bills at the last tender two weeks ago. The average rate for 21day bills was 15.97 per cent, up from 15.601 per cent for 14-day bills at the last tender. The Reserve Bank accepted $2O million oversubscriptions for the 56day bills to make up for a shortfall in accepted bids for 224-day bills. Light bidding for the

$3O million of 224-day bills resulted in only $lO million of bids being accepted — all at 16.59 per cent. Even at this interest rate the bills were well above the 15.725 per cent average rate for similar long-dated bills a fortnight ago. Over all, dealers bid $2Bl million. Tender details:— 21-day bills: offered $2O million, bid S72M, sold S2OM, successful yields 15.94 per cent to 16.00 per cent, weighted average 15.970 per cent (previous average 15.601 per cent for 14-day bills). 56-day bills: offered SSOM, bid SIS9M, sold S7OM, successful yields

15.97 per cent to 16.24 per cent, weighted average 16.047 per cent, (previous average 15.752 per cent for 42-day bills). 224-day bills: offered S3OM, bid SSOM, sold SIOM, successful yields 16.59 per cent, weighted average 16.590 per cent (previous average 15.725 per cent).