Money Market Report for the week ending November 24, 2017

ECB Monetary Operations

On November 20, 2017, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on November 21, 2017, and attracted bids from euro area eligible counterparties of €2.98 billion, €0.13 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 November 22, 2017, 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 $0.04 billion, which was allotted in full at a fixed rate of 1.64%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 182-day bills for settlement value November 23, 2017, maturing on December 21, 2017 and May 24, 2018, respectively. Bids of €35.00 million were submitted for the 28-day bills, with the Treasury accepting €8.00 million, while bids of €65.00 million were submitted for the 182-day bills, with the Treasury accepting €20.00 million. Since €22.00 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €6.00 million, to stand at €189.40 million.

The yield from the 28-day bill auction was -0.375%, up by 1.0 basis point from bids with a similar tenor issued on November 16, 2017, representing a bid price of €100.0292 per €100 nominal. The yield from the 182-day bill auction was -0.326%, down by 0.1 basis point from bids with a similar tenor issued on October 19, 2017, representing a bid price of €100.1651 per €100 nominal.

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

Today the Treasury will invite tenders for 29-day and 91-day bills maturing on December 29, 2017 and March 1, 2018, respectively.