Money Market Report for the week ending 3 February

ECB Monetary Operations

On 30 January, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on 31 January and attracted bids from euro area eligible counterparties of €31.65bn, €2.35bn 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 1 February, 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 $0.27bn, which was allotted in full at a fixed rate of 1.16%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91- and 182-day bills for settlement value 2 Febru- ary, maturing on 4 May and 3 August, respectively. Bids of €45m were submitted for the 91-day bills, with the Treasury accepting €8m, while bids of €30m were submitted for the 182-day bills, with the Treasury accepting €2m. Since €7m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €3m, to stand at €281.20m.

The yield from the 91-day bill auction was -0.393%, up by 0.3 basis point from bids with a similar tenor issued on 19 January, representing a bid price of €100.0994 per €100 nominal. The yield from the 182-day bill auction was -0.393%, down by 0.1 basis point from bids with a similar tenor issued on 26 January, representing a bid price of €100.1991 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 91- and 273-day bills maturing on 11 May and 9 November, respectively.