MEDIA RELEASE No: 92-24 Date: 27 October 1992 Embargo: For Immediate Release

PRICING OF GOVERNMENT SECURITIES

The Bank is making available to interested parties a consolidated set of the formulae it uses to calculate prices and yields for Commonwealth Government securities. Apart from bringing together the various formulae in a convenient form, the release is designed to:

1. remind market participants of the change in the Bank's treatment of near-maturing bonds, where the maturity date is not a business day. This change was announced in March 1992 and will affect the 13% May 1993 stock ($1.6 billion outstanding) from 1 November, when it enters its final 6½ months; it will be priced as if it were to mature on Monday, 17 May 1993.
2. clarify the treatment of the pricing of Treasury Capital Indexed Bonds in the ex-interest period. Some confusion has existed in this area.

Enquiries:
Mr M.G. Bush
Head of Domestic Markets
(02) 551 8300

Mr P.J. McWilliam
Manager
Information Office
(02) 551 9720