AMP’s tender

Press, 21 November 1987, Page 29

AMP’s tender

PA Wellington Government bench-mark July, 1992, stock returned an average yield of 15.56 per cent at the AMP’s Society’s stock tender yesterday. February, 1992, stock averaged 15.92 per cent in the $lOO million tender.

The AMP accepted SB3M worth of bids for July, 1992, stock and S22M for the February stock. Total bids of SIBSM were received for the July stock and SS4M for the February stock. The results compared with yesterday’s rates on the secondary market of 15.53 per cent for July, 1992, stock. Yields averaged 16.36 per cent for July, 1992, stock in the last official tender held by the Government in midOctober.

The yield on the 14 per cent 7/92 trading bond fell to a low of 15.45 per cent before rising to close at 15.57 per cent on Thursday. Secondary market yields on New Zealand government bonds fell by between 14 and 77 basis points on a wide range of maturities during the week ended yesterday, Jarden’s reports. Yields fell

on shorter securities. Yields on overnight cash fell to 16 per cent for much of the week giving a positive funding margin on 30 and 90day assets for the first time for a while. Strong buying of these longer instruments lowered the 30 and 90-day bank bill yield to 17.51 per cent and 17.09 per cent respectively, Jarden’s reports. The November tax flows appeared to be at the lower end of the Reserve Bank’s forecasts (between S9OOM and $1100M) and passed without putting upwards pressure on interest rates.

No Treasury bill tender was held this week because the Reserve Bank forecast a net cash withdrawal from the system during the (Wednesday) settlement week. The Reserve Bank yesterday injected SIOM into the money market after offering to inject S3OM. It accepted SIOM of Government stock maturing March 15, 1989, at interest rates in the range 16.80 per cent to 16.85 per cent, but did not accept any sellbacks because the rates were too low. Bids totalled S47M.