Money Market Report for the week ending 23 June

ECB Monetary Operations

On 19 June, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on 20 June and attracted bids from euro area eligible counterparties of €11.52bn, €0.51bn 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 21 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 1.66%.

Domestic Market Treasury Bill

In the domestic primary market for Treasury bills, the Treasury invited tenders for 90- and 182day bills for settlement value 22 June, maturing on 20 September and 21 December, respectively. Bids of €35m were submitted for the 90-day bills, with the Treasury accepting €3m, while bids of €40m were submitted for the 182-day bills, with the Treasury accepting also €2.40m. Since €18m worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €12.60m, to stand at €184.40m.

The yield from the 90-day bill auction was -0.340%, down by 0.6 basis points from bids with a similar tenor issued on 15 June, representing a bid price of €100.0851 per €100 nominal. The yield from the 182-day bill auction was -0.290%, also down by 0.6 basis points from bids with a similar tenor issued on 15 June, 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 92- and 184day bills maturing on 28 September and 29 December, respectively.