CHEAP MONEY LIKELY
BRITISH OPERATIONS EFFECT OF CONVERSION (Reed. Jan. 20, 3 p.m.) LONDON, Jan. 19. Many people believe that the loan conversion operation foreshadows an early reduction in the bank rate to 1J per cent. The application for Treasury bills to-day reached the highest peak ever known—evidence that there is plenty of money awaiting short-term investment
Tenders for the offering of £65,000,000 amounted to £122,000,000.
The average rate of interest is the lowest since August 18. Gilt-edged securities responded immediately to the conversion operation, the net gains in funds ranging upwards of two points, with the war loan reaching £97 10s. However, the pace Droved too fast and profit-taking caused a reaction. An all-round rise occurred in Dominion and colonial stocks after an earlier reaction as a result of the European tension. A further improvement' is confidently expected.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/GISH19400122.2.119
Bibliographic details
Gisborne Herald, Volume LXVII, Issue 20151, 22 January 1940, Page 11
Word Count
139CHEAP MONEY LIKELY Gisborne Herald, Volume LXVII, Issue 20151, 22 January 1940, Page 11
Using This Item
The Gisborne Herald Company is the copyright owner for the Gisborne Herald. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International licence (CC BY-NC-SA 4.0). This newspaper is not available for commercial use without the consent of the Gisborne Herald Company. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Log in