Mixed trade in Govt bonds

Press, 7 October 1987, Page 39

Mixed trade in Govt bonds

PA Wellington New Zealand Government bonds were mixed in trading yesterday- after opening higher, but future direction is unclear.

July 1992 bonds eased to 16.35 per cent after rising to 16.39 per cent against 16.37 per cent at the open and 16.29 per cent on Monday morning.

Dealers said bearish sentiment developed on Monday afternoon after the Reserve Bank offered very long dated T-bills in its weekly tender. “The market is waiting for the results of the Tbill tender today and the Foodprice Index on Friday,” a dealer said.

New Zealand money market yields were little changed in morning trading and dealers said they expect similar trading to continue. Call traded between 18.50 per cent and 19.0 per cent against 19.25 per cent on Monday and 90-day Bank Bills were little changed at 19.10 per cent against 19.05 per cent on Monday.

There was no Reserve Bank open market operation end dealers said trading was quiet “It was a non-event morning,” a dealer said.

Other dealers said they expect little change in trading for the next few days.

Meanwhile the Reserve Bank withdrew $175 million from the system yesterday in a well bid Treasury bill tender. A weighted average yield of 19.606 per cent resulted from successful bids for $B5 million in 273-day bills offered by the bank, while the weighted average for $9O million in 280-day bills was 19.466 per cent

Total bids for the shorter term bills were $287 million and for the longer term bills, $367.65 million.

For the former, the range of yields on successful yields was 19.09 to 19.69 per cent, and on the range for the 280-day bills was 19.09 to 19.68 per cent.