Money Market Report for the week ending 14 July

ECB Monetary Operations

On July 10, 2017, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on July 11, 2017, and attracted bids from euro area eligible counterparties of €7.10 billion, €1.15 billion 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 July 12, 2017, 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 $0.04 billion, which was allotted in full at a fixed rate of 1.66%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 364-day bills for settlement value July 13, 2017, maturing on October 12, 2017 and July 12, 2018, respectively. Bids of €30.00 million were submitted for the 91-day bills, with the Treasury accepting €8.00 million, while bids of €35.00 million were submitted for the 364-day bills, with the Treasury accepting €2.00 million. Since €15.00 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €5.00 million, to stand at €179.40 million.

The yield from the 91-day bill auction was -0.341%, down by 0.1 basis point from bids with a similar tenor issued on July 6, 2017, representing a bid price of €100.0863 per €100 nominal. The yield from the 364-day bill auction was -0.189%, up by 10.2 basis points from bids with a similar tenor issued on September 1, 2016, representing a bid price of €100.1915 per €100 nominal.

During the week under review, there was no trading on the Malta Stock Exchange.

On Tuesday the Treasury invited tenders for 91- day bills maturing on October 19, 2017.