Short-term rates to remain stable on BNM operations

KUALA LUMPUR: Short-term rates are expected to remain stable on Thursday on Bank Negara Malaysia's (BNM) operations to absorb surplus liquidity from the financial system.

Liquidity in the conventional system is estimated at RM36.36 billion and RM24.26 billion in Islamic funds.

BNM will conduct three conventional money market tenders comprising two RM2 billion tenders each for seven days and 32 days, respectively, and a RM1 billion tender for 14 days.

The central bank will call for an Islamic range maturity auction (iRMA) Qard tender valued at RM4.5 billion for seven to 32 days.

It will also issue two reverse repo tenders comprising a RM600 million tender for 32 days and a RM710 million tender for 61 days.

BNM announced the availability of reverse repo, sale and buy-back agreement (SBBA), and collateralised commodity Murabahah (CCM) facilities for tenors of one to three months.

At 4pm, BNM will conduct up to RM31.70 billion conventional overnight tender and RM18.0 billion for a Murabahah overnight tender.

BNM reserves the right to reject bank's bids for overnight tender if the liquidity position is not reported before 4pm.

-- BERNAMA