Rates drop
PA Wellington Call and 90-day interest rates fell sharply yesterday, and longer term rates followed suit, although at a more moderate pace. Ninety-day commercial bills fell to 21.91 per cent — their lowest rate this year. On Wednesday the same bills stood at 23 per cent. The previous low for the three- month bills this year was 22.3 per cent on January 9, and they peaked at 28 per cent on April 27. Overnight money fell more ! than 3 per cent to 20.48 per j cent at the morning fix, compared with 23.87 per cent at the same time on Wednesday. In early April call rates were regularly trading above 30 per cent, before the Reserve Bank eased the tight cash supply by increasing its daily cash target to $4O million. Since then call rates have receded steadily. Longer term interest rates mirrored the drop in call rates. Key February 1992 bonds fell to 16.43 per cent at mid session from Wednesday’s 16.62 per cent i Many dealers said the [underlying tone pointed to a . continued drop in rates, but : they were cautious about whtJher that would happen. !
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Press, 15 May 1987, Page 11
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189Rates drop Press, 15 May 1987, Page 11
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