Money Market Report for the week ending 16 June
ECB Monetary Operations
On 12 June, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO).The operation was conducted on 13 June and attracted bids from euro area eligible counterparties of €11.01bn, €1.09bn 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 14 June, 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 1.65%.
During the week under review, participants in the first series of targeted longer-term refinancing operations had the option of terminating or reducing their outstanding amount in these operations before maturity. Accordingly, on 28 June, a total of €1.81bn will be repaid.
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 15 June, maturing on 14 September and 14 December, respectively. Bids of €32m were submitted for the 91day bills, with the Treasury accepting €3m, while bids of €25m 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 €5m, to stand at €197m.
The yield from the 91-day bill auction was -0.334%, down by 0.5 basis points from bids with a similar tenor issued on 8 June, representing a bid price of €100.0845 per €100 nominal. The yield from the 182-day bill auction was - 0.284%, a drop of 0.4 basis points from bids with a similar tenor issued on 8 June, representing a bid price of €100.1438 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 90- and 182-day bills maturing on 20 September and 21 December, respectively.