FUTURES Hedging in bills
Strong hedging in the bank bills contract livened up what was a dull day on the futures market yesterday, according to a dealer. The hedging was done by borrowers keen to lock in rates as the bank bills contract moved up sharply at one stage yesterday. However, the dealer described the futures market as suffering from "volatlity malaise,” another way of saying a lack of volatility. This malaise appeared to be growing dominant on world markets as well, the
dealer said. confined to an 8-point trading range on low volume, an
indicaton of the lack ot volatility in futures. The premium to the physical for June moved down 2 points to 19 with the mandatory close-out next Wednesday. For September, the margin was 63 points. The Government stock contract turnover was also low. only 409 lots done as the index eased. On the Sydney Futures Exchange, the June share price index was 14 points lower at 1534 from Tuesday’s 1548 close. About 1903 lots were dealt.
Details of yesterday's trading were:
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Press, 22 June 1989, Page 30
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175FUTURES Hedging in bills Press, 22 June 1989, Page 30
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