Money Market Report for the week ending September 1, 2017

ECB Monetary Operations

On August 28, 2017, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on August 29, 2017, and attracted bids from euro area eligible counterparties of €5.91 billion, €1.35 billion lower 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 August 30, 2017, the ECB conducted a three-month, longerterm refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average rate of the MROs over the life of the operation. The operation attracted bids of €2.90 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.

Also on August 30, 2017, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.04 billion, which was allotted in full at a fixed rate of 1.66%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills for settlement value August 31, 2017, maturing on November 30, 2017. Bids of €53.00 million were submitted, with the Treasury accepting €25.00 million. Since €14.00 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €11.00 million, to stand at €156.40 million.

The yield from the 91-day bill auction was -0.356%, down by 0.3 basis points from bids with a similar tenor issued on August 24, 2017, representing a bid price of €100.0901 per €100 nominal.

During the week under review, there was no trading on the Malta Stock Exchange.

This week there will be no auctions for Treasury bills.