Bullish bond sentiment

Press, 20 November 1987, Page 23

Bullish bond sentiment

PA Wellington New Zealand Government bond yields were mixed in quiet morning trading yesterday with sentiment still bullish medium-term. The key July, 1992, stock returned to 15.54 per cent after rising to 15.58 per cent earlier against 15.55 per cent on Wednesday. Dealers said the market was in neutral and starting to look towards the December 10 Government stock tender and the December quarter Consumer Price Index. “Day by day expectations seem, to be dropping,” a dealer said. “The underlying trend is for further downside but time is the big factor — it’s a case bf when,” another said. New Zealand bank bills rose slightly in early trading but are expected to retreat again, dealers said. The 90-day bank bills rose to 17.05 per cent against 16.90 per cent on Wednesday. Call fell to 16.25 per cent against 16.50 per cent Dealers said there was some jockeying around as some traders attempted to move the market higher, but there were too many buyers. The market was in a consolidation phase waiting for a fresh assault on lower yields. But nervousness prevailed. The Reserve Bank yesterday withdrew $lO million cash from the money market by selling Treasury bills maturing July 25, 1988. Interest rates ranged from 17.05 to 17.09 per cent. Bids totalled $56 million.