Sunday, June 23, 2013

Steady short-term rates seen next week

Short-term rates are likely to be stable as Bank Negara Malaysia (BNM) is expected to continue its intervention exercise next week to stabilise the financial market, dealers said.

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/20130622123504/Article/index_html
Published: Jun 23, 2013

They said the market was expected to be flushed with funds and BNM would call for tenders to absorb excess funds from the system.

For the week just-ended, the overnight, one-, two- and hree-week rates moved between 2.92 per cent and 3.04 per cent.

BNM intervened on a daily basis to mop up excess funds by conducting conventional, repo, range maturity auction and Al-Wadiah tenders.

It also called for late tenders to reduce the surplus and offered repo tenders on a daily basis.

Total liquidity surplus in conventional operations this week amounted to RM16.831 billion while excess in the Islamic system stood at RM5.258 billion.-- Bernama

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