ABNORMAL EASE
STATE OF THE LONDON MONEY MARKET. ’Australian and N.Z. Cable Association. LONDON, October 39. Abnormal ease prevails in the money market, due almost entirely to the Government’s continued heavy borrowing from the Bank of England. The position is that during the past week the volume of Treasury bills offered for sale by tender has been much below the maturing bills and the market’s requirement for Treasury bills. The result has been that Treasury bills have fallen to unremunerative levels. The Exchequer is unable to cover maturities by the sale of new bills, and is compelled to borrow on ways and means advances, over and above the amount of the revenue deficit. Experts consider the present ease is likely to continue. The Stock Exchange is rather firmer, and a more cheerful tone prevails, the easiness of money having cansed a steady how of _ investment in gilt-edged stocks until the announcement of £30,000,000 local loan stocks, which curtailed- business, causing investors to wait for this new loan instead of coming on to the market to purchase new stocks.
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Bibliographic details
New Zealand Times, Volume XLVIII, Issue 11046, 1 November 1921, Page 6
Word Count
178ABNORMAL EASE New Zealand Times, Volume XLVIII, Issue 11046, 1 November 1921, Page 6
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