BANK OF JAPAN TO SELL 500 BILLION YEN IN BILLS
The Bank of Japan will sell 500 billion
yen of financing bills via a 32-day repurchase agreement to
help mop up a money market surplus of around 1,750 billion yen
tomorrow, short-term money houses said.
    The bill, to mature on May 2, will produce a 3.8995 pct
yield on the sales, made by the Bank of Japan to banks and
seucurities houses through money houses, they said.
    The repurchase agreement yield compares with the 3.9375 pct
one-month commercial bill discount rate today and the 4.40 pct
rate on one-month certificates of deposit.
    The surplus is due largely to government tax allocations to
local governments and public entities at the end of fiscal
1986/87 tomorrow.
    The operation will put outstanding bill supplies at about
2,500 billion yen.
 REUTER
