The Bank of Japan will sell 600 billion yen in 60-day financing bills tomorrow through 36-day repurchase agreements maturing June 3 to roll over a previously issued 400 billion yen of such bills maturing tomorrow money traders said. The yield on the bills for sale to banks and securities houses by money houses will be 3.8498 pct compared with the one-month commercial bill discount rate today of 3.8125 pct and the one-month certificate of deposit rate of 4.18/07 pct. The traders estimate the surplus tomorrow at about 700 billion yen. The remaining 300 billion yen is mainly due to increased cash holdings by the banking system because of central bank dollar purchases. The operation will put the outstanding supply of such bills to 3500 billion yen.
BANK OF JAPAN TO SELL 600 BILLION YEN IN BILLS