FUTURES Bank bills pressured
Downside pressure forced bank bill futures through the critical 8609 point level in trading yesterday. Mr Mark Thiele, of Egden Wignail and Company Futures, said high cash rates of more than 15 per cent caused the downside pressure. Bank bills had been well supported around the 8610/15 level, Mr Thiele said. But it remained to be seen if there would be a follow through after the market hit a low of 8608. Bank bills opened trading at 8613 and moved up slightly to 8615 before falling back. The market closed at 8610 with 689 lots having traded.
Government stock contracts (GSC) witnessed a lot of switching from one month to another, but the switching did not affect the over-all market direction, Mr Thiele said. It was natural that when a close out neared, such as on the December contracts, dealers would transfer to the next one, he said. But no-one really knows which way to go, or for what reasons — everyone was watching everyone else, he said. “There are still worries about big players in the market with ‘short’ positions. “It is a carry-over effect
from last week, and more than anything that will affect the way the market goes for a while," said Mr Thiele. The Barclays share price index futures (BSI) had an extremely quiet day, opening at 2096 points but closing slightly firmer on its high of 2107. The BSI travelled up most of the day as the physical market firmed. Both were influenced by the wearing off of the effects of rights issues by Fletcher Challenge and RJI, said Mr Thiele. The premium to the physical market moved out 9 points to 35.
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Press, 30 November 1989, Page 34
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281FUTURES Bank bills pressured Press, 30 November 1989, Page 34
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