SHORT-TERM RATES TO REMAIN STABLE NEXT WEEK

16 Jul 2013 07:53

KUALA LUMPUR, July 13 (Bernama) -- 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 surplus liquidity, dealers said. A dealer said the market was expected to be flushed with funds and BNM would call for tenders to absorb the excess funds. For the week just-ended, the overnight, one-, two- and three-week rates were flat at 2.92 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. Total liquidity surplus in conventional operations last week was reduced to RM18.53 billion while excess in the Islamic system declined to RM1.15 billion. -- BERNAMA

MKI NHIZ THs