SYDNEY FINANCIAL FUTURES CLOSE MIXED
Exhausted buyers and a late fall on the
Australian share market due to profit-taking led to a sharp
drop in share price index contracts on the Sydney Futures
Exchange, dealers said.
    Domestic credit futures were mixed, with 90-day bank bills
firming in line with easier physical yields as the dollar rose,
they said. Ten-year bond futures, however, were steady on the
day's open in line with little changed physical yields.
    Comex-linked gold futures were higher on rises in bullion,
while international credit futures were mixed in extremely thin
trade.
    June share price index futures closed at 1735.5 from the
day's 1754.0 open, well off yesterday's record 1748.5 close.
September was also well down on 1737.0 from 1763.0 after
finishing at 1746.0 yesterday. About 3,154 lots were traded.
    Dealers said the momentum of the futures market appeared to
be exhausted, with a return to bigger discounts now likely.
    Demand for gold and industrial stock continued to drive up
the all ordinaries index, which climbed 8.5 points to 1754.8,
although this was well off the day's highs after late
profit-taking.
    Easier physical yields, as a result of the firmer
Australian dollar, also saw rises in 90-day bank bill futures.
June contracts rose to 85.16 from the day's 85.00 open in
active trade after falling to a low of 84.96. September rose to
85.25 from 85.12 after finishing yesterday at 85.20. About
6,912 contracts were traded.
    Physical yields eased to 15.48/53 pct from 15.60.
    June 10-year bond futures, the only month to trade, were
steady on the day's 86.87 open after closing yesterday at
86.96. About 7,041 lots were exchanged.
    Physical March 1997 paper was 13.11/14 pct from 13.14.
    June Comex-linked gold futures finished strongly at 425.00
U.S. Dlrs an ounce from the day's 423.20 open and overnight
close of 422.60 in line with strong gains in bullion. Only nine
lots were traded.
    International credit futures were mixed, with June U.S.
T-bonds finishing lower at 97.27 from the day's 97.30 start,
well off the overnight Chicago close of 98.04. The contract was
untraded locally yesterday.
    June Eurodollars were untraded on a buy/sell quote of
93.31/36 after finishing at 93.35 in Chicago from a local close
yesterday of 93.36.
 REUTER
