Money Market Report for the week ending 2 June ECB Monetary Operations
On 29 May, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on 30 May and attracted bids from euro area eligible counterparties of €12.07bn, €3.84bn 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 31 May, 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 €3.05bn from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy. Also on 31 May, the ECB conducted a sevenday 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 182-day bills for settlement value 1 June, maturing on 31 August and 30 November, respectively. Bids of €42m were submitted for the 91-day bills, with the Treasury accepting €7m, while bids of €55m were submitted for the 182-day bills, with the Treasury accepting €2m. Since €10m worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €1m, to stand at €208m. The yield from the 91-day bill auction was -0.330%, down by 0.9 basis points from bids with a similar tenor issued on 25 May, representing a bid price of €100.0835 per €100 nominal.
The yield from the 182-day bill auction was -0.300%, down by 1.0 basis point from bids with a similar tenor issued on 18 May, representing a bid price of €100.1519 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 7 September and 7 December, respectively.