Money Market Report for the week ending 1 September
ECB Monetary Operations
On 28 August, the European Central Bank announced its weekly main refinancing operation (MRO). The operation was conducted on 29 August and attracted bids from euro area eligible counterparties of €5.91bn, €1.35bn 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 30 August, 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 €2.90bn from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on 30 August, 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 Treasury Bill Market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills for settlement value 31 August, maturing on 30 November. Bids of €53m were submitted, with the Treasury accepting €25m. Since €14m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €11m, to stand at €156.4m.
The yield from the 91-day bill auction was -0.356%, down by 0.3 basis points from bids with a similar tenor issued on 24 August, representing a bid price of €100.0901 per €100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
This week there will be no auctions for Treasury bills.