BRITAIN’S UNLIMITED LOAN

Waikato Times, Volume 111, Issue 18625, 2 May 1932, Page 7

BRITAIN’S UNLIMITED LOAN

FAVOURABLE RECEPTION. r. : , LIBERAL RESPONSE EXPECTED. LINE IN OBSCURE WATERS. 7 United Press Assn.—Elec. Tel. Copyright (Received May 2, 10.30 a.m.) . LONDON, May 1. , I : The Treasury’s new issue of bonds y,, has been favourably received, and is 1 likely to be well subscribed. It" is noteworthy that for the first time since the war the Government lias been able to offer nominally 3 per cent, bonds though the actual yield will be about 3* per cent. The Treasury’s object in making this offer Is, 1 according to the Financial News, to ensure the absolute solidity and strength of the London money market. It Is understood the proceeds of the issue will be used partly to pay off £64,500,000 of 4 per cent. Treasury j bonds due in 1933, and partly to reduce the outstanding volume of Treasury bills. On the subject of the continuance of low money rates, eminent author!- ' ties have predicted rates as low as 3$ per cent, within a year for long term , Government securities, and all indications point at least to rates being distinctly lower than those now ruling. Into these obscure waters the new issue cast a sounding line. By the mere rad of its carrying only 3 per cent, nominal interest, It suggests a lower yield for Government stocks. The whole operation must be considered skilful.