Money Market Report for the week ending 19 May

ECB Monetary Operations

On 15 May, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on 16 May and attracted bids from euro area eligible counterparties of €13.98bn, €0.30bn 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 17 May, the ECB conducted an eight-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 91- and 182day bills for settlement value 18 May, maturing on 17 August and 16 November, respectively. Bids of €31m were submitted for the 91day bills, with the Treasury accepting €11m, while bids of €50m were submitted for the 182day bills, with the Treasury accepting €2m. Since €3m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €10m, to stand at €234m.

The yield from the 91-day bill auction was -0.319%, up by 0.1 basis point from bids with a similar tenor issued on 4 May, representing a bid price of €100.0807 per €100 nominal. The yield from the 182-day bill auction was - 0.290%, unchanged from bids with a similar tenor issued on 11 May, 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-day bills maturing on 24 August.