LONDON GILTS

Press, Volume CVI, Issue 31084, 13 June 1966, Page 17

LONDON GILTS

Outlook Is Better (N.Z.P.A.-Reuter —Copyright) LONDON, June 9. The gilt-edged market this week has been worried about the possibility of a U.K. bank rate rise to combat the drain on the reserves caused by the seamen’s strike and the weakening of sterling. Press comment on Monday suggested an early return to a 7 per cent rate as interest rates climbed in other financial centres. There were also suggestions that special deposits might be increased. By Wednesday afternoon, however, the market began to emerge from its gloomy spell. Jobbers had generally managed to forestall sellers by the speedy lowering of quotations over the previous two days, so very little stock had actually come out. When one or two buyers appeared at the lower levels, there were widespread gains of up to one quarter. Renewal of apprehension on Thursday morning was dispelled by the Bank of England’s "no change” decision, and the close found a few' gains going beyond half a point over the week. Commonwealth stocks had moved in step with gilts.