Bank announces $145M tender

Press, 30 May 1987, Page 25

Bank announces $145M tender

Wellington reporter A Treasury bill tender worth $145 million will be offered on June 2, the Reserve Bank has announced. The maturities offered will be 119 days (late September-early October), $2O million; 126 days (mid-October), $2O million; 140 days (late October), $4O million; 161 days (mid-November), $65 million. These bills are being offered to offset the predicted net injection during the settlement week of June 3 to 9. The Reserve Bank said the net injection was because of Government expenditure and Treasury bill maturities exceeding Government revenue. As well as covering the

GST flow in early October, the 119-day bills would coincide with any end-of-quarter payments to the Government during September. The 126-day bills would assist prime liquidity levels during the settlement period for the September stock tender in the absence of any Government stock maturing in October, the Reserve Bank said. The other maturities had been chosen to coincide, respectively, with the tax flows at the end of October and with the November provisional and terminal tax drain. The Reserve Bank expected to be conducting open-market operations as usual, after which the cash balance should fluctuate around the $3O

million target. It would purchase bills for its own portfolio at 119 days, $llO million; 126 days, $5O million; 140 days, $5O million; and 161 days, $5O million. Bids had to be lodged at one of the tender boxes of the Reserve Bank in either Auckland, Wellington or Christchurch, and the boxes would be open between 9 a.m. and 10.30 a.m. on June 2. Successful bids could be settled on any banking day between June 3 and • 9, subject to the announcement of results before 10 a.m. on June 3, the Reserve Bank said. Should the results not be available by that time the settlement date would be reduced to June 4 to 9 inclusive.