Money Market Report for the week ending November 25, 2016
ECB Monetary Operations
On Monday, November 21, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on Tuesday, November 22, and attracted bids from euro area eligible counterparties of €33.72 billion, €1.08 billion higher than the bid amount of the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 0.00%, in accordance with current ECB policy.
On Wednesday, November 23, the ECB conducted a six-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $1.34 billion, which was allotted in full at a fixed rate of 0.89%.
Domestic Treasury Bill Market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 182-day bills maturing on December 22, 2016 and May 25, 2017, respectively. Bids of €40.00 million were submitted for the 28-day bills, with the Treasury accepting €3.00 million, while bids of €60.00 million were submitted for the 182-day bills, with the Treasury accepting €30.00 million. Since €12.00 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €21.00 million, to stand at €271.00 million.
The yield from the 28-day bill auction was -0.394%, down by 0.1 basis point from bids with a similar tenor issued on November 17, 2016, representing a bid price of 100.0307 per 100 nominal. The yield from the 182-day bill auction was -0.386%, down by 0.7 basis point from bids with a similar tenor issued on October 27, 2016, representing a bid price of 100.1955 per 100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
On Tuesday the Treasury invited tenders for 28-day and 91day bills maturing on December 29, 2016 and March 2, 2017, respectively.