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Rates down

PA Wellington Money market interest rates backed off Wednesday’s highs, with easing for both short-term and long-term rates. Prime 90-day bills were at 23.1 per cent (24 per cent on Wednesday) while on-call money was slightly easier at 22.4 per cent (22.7 per cent). Dealers said the short-term market was still nervous of the need to settle $465 million of stock tender money by next Monday — just $2B million was settled on Wednesday — but generally the market was handling the

current squeeze reasonably well. There was no Reserve Bank open market operation yesterday, for the third successive day, and dealers said this helped’ ease the market a little. In the long-term market five-year bonds eased to 17.45 per cent (17.75 per cent) and three-year bonds eased to 18.8 per cent (19 per cent).

Dealers said bond trading was thin with attention continuing to focus on the futures market rather than the cash market. They recommended caution and said spare cash was better directed at the short-term end.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19861219.2.134.7

Bibliographic details

Press, 19 December 1986, Page 22

Word Count
169

Rates down Press, 19 December 1986, Page 22

Rates down Press, 19 December 1986, Page 22