Money Market Report for the week ending 12 May

ECB Monetary Operations

On 8 May, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on 9 May and attracted bids from euro area eligible counterparties of €13.68bn, €0.75bn 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 10 May, 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 $0.04bn, which was allotted in full at a fixed rate of 1.41%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 182day bills for settlement value 11 May, maturing on 8 June and 9 November, respectively. Bids of €20m were submitted for the 28day bills, with the Treasury accepting €2m, while bids of €50m were submitted for the 182-day bills, with the Treasury accepting €5m. Since €4m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €3m, to stand at €224m.

The yield from the 28-day bill auction was -0.350%, unchanged from bids with a similar tenor issued on 23 February, representing a bid price of €100.0272 per €100 nominal. The yield from the 182-day bill auction was -0.290%, down by 4 basis points from bids with a similar tenor issued on 27 April, representing a bid price of €100.1468 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 182-day bills maturing on 17 August and 16 November, respectively.