XN000022-1990-06-01 — Page 6

FRIDAY, JUNE 1, 1990

5

EXCHANGE FUND BILLS PROGRAMME TO CONTINUE

THE FINANCIAL

SECRETARY,

SIR PIERS OF THE EXCHANGE

GIVEN

HAS JACOBS,

HIS FUND BILLS PROGRAMME ISSUES OF SPOKESMAN SAID TODAY

FOR CONTINUATION APPROVAL IMMEDIATELY AFTER THE COMPLETION OF THE INITIAL 13 WEEKLY

A GOVERNMENT FUND BILLS, EXCHANGE

91-DAY (FRIDAY).

"THE 14TH ISSUE WILL THEREFORE COINCIDE WITH THE FIRST ISSUE,' HE SAID.

Fr

THE MATURITY OF

EXCHANGE FUND BILLS BASED ON THE FINDINGS OF A REVIEW OF THE PROGRAMME CONDUCTED BY THE MONETARY AFFAIRS BRANCH AND ADVICE FROM THE MARKET MAKERS, A RECOMMENDATION MARKET COMMITTEE COMPRISING ALL 14 TO CONTINUE TO PROGRAMME WAS MADE TO SIR PIERS, THE SPOKESMAN SAID.

THE

THE DEVELOPMENT IN "THE FINANCIAL SECRETARY WAS PLEASED WITH THIS NEW MARKET, WHICH HAS RECEIVED VERY ENCOURAGING SUPPORT FROM RECOGNISED DEALERS AND IN PARTICULAR THE MARKET MAKERS, SAID.

IF

THE SPOKESMAN

THE OBJECTIVE OF MONEY MARKET OPERATIONS TO ENSURE EXCHANGE SUCCESSFULLY ACHIEVED.

A CREATING

NEW

INSTRUMENT

FOR

CONDUCTING RATE STABILITY HAD BERN

"ALL THE FIRST 12 TENDERS

WERE

AND THE 13TH TENDER TO BE HELD ON JUNE 5 IS SUCCESSFUL," THE SPOKESMAN SAID.

SUBSTANTIALLY OVER-SUBSCRIBED EXPECTED то BE EQUALLY

THE MARKET

"ACCORDING TO BOTH THE MONETARY AFFAIRS BRANCH AND MAKERS, SECONDARY MARKET TRADING IN THE BILLS HAS BEEN ACTIVE.

YIELDS "THE RECENT AGREEMENT BY MARKET MAKERS TO QUOTE TWO WAY

FLEXIBLE ARRANGEMENTS FOR SHORTING FOR THE BILLS, AND NEW AND MORE BILLS BY MARKET MAKERS HAVE ADDED LIQUIDITY TO THE MARKET."

INCREASING

INTEREST

ALSO

AN THERE WAS CORPORATIONS IN VIEW OF THE BILLS' TAX FREE STATUS.

IN

THE BILLS

FROM

THE YIELD OF THE BILLS IS SIGNIFICANTLY HIGHER THAN TAX YIELD FROM PLACING MONEY ON DEPOSIT WITH BANKS.

THE AFTER

BILLS 91-DAY FLEXIBILITY FOR

A REVISED INFORMATION THE MONETARY AFFAIRS BRANCH IS ISSUING

PROGRAMME FOR ISSUING MEMORANDUM TO TAKE FORWARD THE WEEKLY. THE INFORMATION MEMORANDUM WILL ALSO PROVIDE THE ISSUE OF BILLS OF LONGER MATURITIES UP TO 12 MONTHS FROM TIME.

TIME TO

/PERSONS WISHING