Interest futures ease
Interest-rate futures eased yesterday as physical rates firmed. PCPs (short-term interest) futures, soon to be replaced by a bank-endorsed contract, were about 30 points down on Friday (close to close). The November Government stock contract was nine points down. Mr Peter Dumbleton, of Mair Astley Futures, said that negative funding was a factor in the fall of Government stock futures rates.
Some investors in the physical market had been borrowing money short-term and buying Government stock. Now that the call rates were above stock rates, this was "negative funding,” and investors were selling their stock. The increased supply of stock puts prices down, which increases yield, and futures move inversely to this. United States dollar futures firmed 70 points on closing prices. Trading on the physical market was very quiet, and no trend emerged. Wool futures firmed across the board, 5c to Bc. Mr Dumbleton attributed this to bullish statements by the New Zealand Wool Council, which, he said, suggested that given a stable currency wool prices would remain firm. Details of yesterday’s trading: SUS CONTRACTS Mth Open H/L Last Vol Nov. 1.9760 .9800/760 .9800 10 Contracts traded: 10. Open positions at October 31: Nov. 252, Dec. 28, Jun. 6, Mar. 3, total 289 (up 3).
COMMERCIAL BILLS Mth Open H/L Last Vol Nov. 8365 365/325 335 28 Dec. 8390 390/370 370 26 Mar. 8380 380/380 380 2 Contracts traded: 56. Open positions at October 31: Nov. 72, Dec. 607, Mar. 330, Jun. 123, Sep. 48, Dec. 45, Mar. 47, Jun. 10, total 1282 (same). GOVERNMENT STOCK Mth Open H/L Last Vol Nov. 8418 418/418 418 2 Dec. 8429 429/424 425 183 Jan. 8430 430/430 430 1 Contracts traded: 186. Open positions at October 31: Nov. 239, Dec. 2246, Jan. 2, Mar. 47, total 2534 (up 68). WOOL FUTURES Mth Open H/L Last Vol Dec. 572 572/572 572 9 Jan. 555 562/555 562 17 Mar. 555 563/555 562 23 May 561 567/561 567 26 Aug. 576 577/576 577 12 Oct. 575 579/575 579 5 Dec. 575 582/575 580 7 Jan. 581 581/581 581 4 Mar. 580 581/580 581 7 Contracts traded: 110. Open positions at October 31: Dec. 214, Jan. 329, Mar. 558, May 503, Aug. 239, Oct. 207, Dec. 122, Jan. 185, Mar. 122, total 2479 (up 18). WHEAT FUTURES No contracts traded: Open position at October 31: unchanged.
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Press, 4 November 1986, Page 23
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393Interest futures ease Press, 4 November 1986, Page 23
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