Money Mar­ket Report for the week end­ing 1 September

The Malta Business Weekly - - FRONT PAGE -

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.

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