Bank to offer $175M T-bills

Press, 6 October 1987, Page 49

Bank to offer $175M T-bills

PA Wellington The Reserve Bank said it will offer $175 million of Treasury bills in two maturities at its weekly tender today. It said it will offer $B5 million of 273-day bills, maturing July 5, and $9O million of 280-day bills, maturing July 12.

In addition to the bills offered to the market, the bank said it will purchase $lOO million in each of the maturities.

It said it expects to conduct open market operations as usual after which the cash balance should fluctuate around the $2O million target The tender is the first since September 8. Meanwhile, New Zealand Government bond yields were little changed in lacklustre trading yesterday and dealers said they expect quiet trading for the rest of the week.

July 1992 bonds traded in a range between 16.28 per cent and 16.30 per cent against 16.26 per cent on Friday.

"The market seems to be reasonably comfortably positioned for the Consumer Price Index (due next week) and there is no impetus to do

anything,” a dealer said, t Dealers said the market is expected to remain around current levels, but they are watching money market rates which.are expected to remain firm in the short-term.

Money market rates were firm in a quiet morning market in which the Reserve Bank did not intervene, dealers said. Call settled at 19.50 per cent after trading between 18.75 per cent and 19.25 per cent against 19.50 per cent on Friday morning and 90-day bank bills were about 19.00 per cent against 18.85 per cent on Friday. Dealers said they expect rates to remain firm and the Reserve Bank to maintain its tight monetary policy stance. “They are using both open-market and openmouth operations,” a dealer said.