BANK OF JAPAN TO SELL 800 BILLION YEN IN BILLS
The Bank of Japan will sell 800 billion
yen in deficit financing bills today through 51-day repurchase
agreements maturing June 3 to help absorb a projected money
market surplus, money traders said.
    The operation will raise the outstanding supply of the
bills to a record 4,800 billion yen.
    The yield on the bills for sale to banks and securities
houses from money houses will be 3.8999 pct compared with the
two-month commercial bill discount rate today of 3.8750 pct and
the two-month certificate of deposit rate of 4.13/00 pct.
    The traders estimated the surplus today at about 1,800
billion yen.
    They said it is mainly due to 1,300 billion yen of
government tax allocations to local governments and public
entities and to excessive banking system cash holdings due to
continuous large central bank dollar purchases.
 REUTER
