Stable short-term rates seen next week

Short-term rates are expected to remain stable next week as Bank Negara Malaysia (BNM) is expected to continue its intervention in the market to mop up excess liquidity, dealers said.

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/20130727125911/Article/index_html
Published: July 28, 2013

A dealer said the market is expected to be flushed with funds and BNM would call for tenders to absorb the surplus funds.

For the week just-ended, the overnight, one-, two- and three-week rates were flat at 2.93 per cent, 2.98 per cent, 3.02 per cent and 3.04 per cent respectively.

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

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

The liquidity surplus in the conventional operations during the week fell to RM13.757 billion and in the Islamic system, it rose to RM2.589 billion.-- Bernama