G. Stock yields above 13 p.c.
PA Wellington Government stock yields rose in light trading yesterday reflecting the worse than expected food price inflation figure and high funding costs. July, 1992 bonds opened at 12.92 per cent but were sold after the food price index was announced.
Yields rose to a high of 13.02 per cent before,closing at 12.98 per cent. The 1.3 per cent rise in the March Food Price Index compared with 0.4 per cent in February and expectations of between nil and 0.5 per cent|. ; The March quarter Consumer Price Index J(CPI) is 1 due out on Thursday and the i monthly i food
price indices make up about 18 per cent of the quarterly CPI. “The food price figure is almost insignificant for the full March quarter CPI but funding costs will continue to plague bond holders and it will take a very good CPI figure or some relief on cash rates to cause a continuation of the bull run in bonds,” one dealer said.
Dealers expect . the March CPI to increase between 1 and 1.6 per cent.
Liquidity is expected to be tight this week J Ninety-day bills I also rose to a high of 15.8 per cent against 15.35 per cent last week. j
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/CHP19880412.2.117.7
Bibliographic details
Press, 12 April 1988, Page 22
Word Count
210G. Stock yields above 13 p.c. Press, 12 April 1988, Page 22
Using This Item
Stuff Ltd is the copyright owner for the Press. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Copyright in all Footrot Flats cartoons is owned by Diogenes Designs Ltd. The National Library has been granted permission to digitise these cartoons and make them available online as part of this digitised version of the Press. You can search, browse, and print Footrot Flats cartoons for research and personal study only. Permission must be obtained from Diogenes Designs Ltd for any other use.
Acknowledgements
This newspaper was digitised in partnership with Christchurch City Libraries.
Log in