Money Market Report for the week ending 30 September

ECB Monetary Operations

On Monday, 26 September, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on Tuesday, 27 September and attracted bids from euro area eligible counterparties of €38.74bn, €4.44bn 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 Wednesday, 28 September, the ECB conducted a three-month, longer-term 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 €4.57bn from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.

Also on Wednesday, 28 September, the ECB conducted a sevenday US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $6.35bn, which was allotted in full at a fixed rate of 0.86%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 28- and 91-day bills maturing on 27 October and 29 December, respectively. Bids of €25m were submitted for the 28day bills, with the Treasury accepting €2m, while bids of €75m were submitted for the 91- day bills, with the Treasury accepting €25m. Since €32m worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €5m, to stand at €269.75m.

The yield from the 28-day bill auction was -0.390%, down by 4.9 basis points from bids with a similar tenor issued on 4 August, representing a bid price of 100.0303 per 100 nominal. The yield from the 91-day bill auction was - 0.389%, down by 1.1 basis points from bids with a similar tenor issued on 22 September, representing a bid price of 100.0984 per 100 nominal.

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

This week the Treasury will invite tenders for 28-day maturing on 3 November.