FUTURES Govt stock bullish
Futures traders were speculating yesterday that stock yields may ease about March. This was in spite of further rises in short-term interest rates.
Government stock futures were very bullish after many bearish days that began with the announcement the Budget deficit would be greater than earlier expected. The contracts gapped up from the Monday close to open at 8281. They were well bid all morning. Prices reached a low of 8274 before closing on 8285, which indicates a physical yield of 17.15 per cent. A Wellington broker said the activity matched that on the physical market, where yields on Government stock fell. (Futures and the physical market move inversely.) There Was also speculation in March contracts in the belief interest rates would fall by then and futures would rise.
Ninety-day bank-accepted bill futures fell sharply- The January contract closed 30 points down on the final January price. February
closed 35 points down, and March 10 points down. The Januapr contract is indicating an interest rate of 22.35 per cent. Wool futures were quiet after their recent bull run, ended by a correction on Monday. The trend was indecisive ahead of today's auction at Christchurch. Details of yesterday’s trading: SUS CONTRACTS Mth Open H/L Last Vol Jan. 1.9635 9722/625 9665 13 Contracts traded: 13. Open positions at December 15: Jan. 445, Feb. 10, Mar. 15, total 470 (down 3 points). COMMERCIAL BILLS Mth Open H/L Last Vol Mar. 7975 975/950 950 23 Contracts traded: 23. Open positions at December 15: Jan. 6, Feb. 5, Mar. 381, Jun. 124, Sep. 47, Dec. 45, Mar. 46, Jun. 10, total 664 (same). GOVERNMENT STOCK Mth Open H/L Last Vol Mar. 8281 285/274 285 440 Contracts traded: 440. Open positions at December 15: Jan. 8, Feb. nil, Mar. 2204, total 2212 (up 239).
Open positions at December 15: Dec. 32. Jan. 136, Mar. 417, May 503, Aug. 221, Oct. 193, Dec. 141, Jan. 210, Mar. 201, May 99, total 2153 (down 66). WHEAT FUTURES Mth Open H/L Last Vol Mar. 219 219/219 219 2 Contracts traded: 2. Open positions at December 15: Feb. 13, Mar. 27, May 18, total 58 (up 2). 90-DAY BANK BILLS
Contracts traded: 194. Open positions at December 15: Jan. 548, Feb. 11, Mar. 95, Jun. 10, Sep. 10, Dec. 10, Dec. 10, Mar. 10, Jun. 10, Sep. 10, Dec. 10, total 724 (up 53).
WOOL FUTURES Mth Open H/L Last Vol Dec. 595 595/595 595 2 Mar. 595 596/591 591 8 May 602 602/599 599 9 Dec. 616 616/616 616 1 Jan. 621 621/615 615 7 Contracts traded: 27.
Mth Open H/L Last Vol Jan. 7790 790/750 765 98 Feb. 7875 875/850 850 10 Mar. 7975 975/955 975 25 Jun. 8150 150/150 150 9 Sep. 8150 150/150 150 4 Dec. 8150 150/150 150 9 Mar. 8150 150/150 150 9 Jun. 8150 150/150 150 10 Sep. 8150 150/150 150 10 Dec. 8150 150/150 150 10
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Press, 17 December 1986, Page 43
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488FUTURES Govt stock bullish Press, 17 December 1986, Page 43
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