Volatile futures
Futures brokers had to grapple with an extremely volatile Government stock (GSK) contract in busy trading yesterday.
One broker said that at times consecutive trades were seven points apart, which made it difficult to discern a trend. However, the movement of the kiwi dollar against the United States currency slowed markedly on the foreign exchange market, and left a quiet day for U.S. dollar futures trading. Mr Peter Dumbleton, a trader for Mair Astley Futures, said that the GSK contract went through a 41 point trading range, finishing near its highs. The reason for the change in sentiment was that the Reserve Bank tender No. 38 was going to contain only $l5O million in five-year Government stock, not S2SOM as expected. “The net effect, we feel, will be that the five-year stock will be bidded more
aggressively and bring yields down,” he said. The bank bills contract (BBC) was also volatile because interest rates started off firmly before easing during the day. The BBC mirrored this pattern. The wool index finished sharply higher because of the higher prices offered at yesterday’s auctions, he said. Details of yesterday’s trading were: SUS CONTRACTS Mth Open H/L Last Vol Dec 1.9750 9750/9750 950 65 Jan 2.0040 0070/0000 0050 27 Contracts traded: 92 Open positions at December 3. Dec 499, Jan 277, Feb 10, Mar 13, total 799 (up 53). COMMERCIAL BILLS Mth Open H/L Last Vol Contracts traded: nil Open positions at December 3: Dec 464, Jan 6, Feb 5, Mar 381, Jun 124, Sep 47, Dec 45, Mar 47, Jun 10, total 1129 (same). GOVERNMENT STOCK Mth Open H/L Last Vol Dec 8244 285/237 272 1352 Mar 8273 301/273 301 25 Contracts traded: 1377
Open positions at December 3: Dec 2776, Jan 7, Mar 521, total 3304, (up 216).
Contracts traded: 188 Open positions as at December 3. Dec 83, Jan 293, Mar 547, May 567, Aug 259, Oct 206, Dec 134, Jan 191, Mar 166, May 44, total 2490 (up 1). WHEAT FUTURES Mth Open H/L Last Vol Mar 87 218.0/218.0 218.0 2 Contracts traded: 2 Open positions at December 3: Feb 13, Mar 23, May 18, total 54 (same). 90-DAY BANK BILLS Mth Open H/L Last Vol Jan 7885 920/855 920 118 Mar 7975 8000/7975 8000 12 Contracts traded: 130 Open positions at December 3: Jan 128, total 128 (up 20).
WOOL FUTURES Mth Open H/L Last Vol Dec 576 578/575 578 11 Jan 561 565/561 565 22 Mar 564 570/563 568 40 May 567 575/567 575 41 Aug 577 582/577 582 23 Oct 584 586/580 586 13 Dec 584 585/584 585 5 Jan 580 585/580 585 7 Mar 584 589/584 589 26
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Press, 5 December 1986, Page 24
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445Volatile futures Press, 5 December 1986, Page 24
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