Money Market Report for the week ending 3 November

ECB Monetary Operations

On 30 October, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 31 October and attracted bids from euro area eligible counterparties of €3bn, €2.32bn 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 1 November, 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 28- and 91-day bills for settlement value 2 November, maturing on 30 November and 1 February 2018, respectively. Bids of €25m were submitted for the 28-day bills, with the Treasury accepting €5m, while bids of €94m were submitted for the 91-day bills, with the Treasury accepting €21m. Since €5m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €21m, to stand at €165.4m.

The yield from the 28-day bill auction was -0.383%, down by 0.4 basis point from bids with a similar tenor issued on 26 October, representing a bid price of €100.0298 per €100 nominal. The yield from the 91-day bill auction was -0.368%, down by 1.0 basis point from bids with a similar tenor also issued on 26 October, representing a bid price of €100.0931 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 28- and 273-day bills maturing on 7 December and 9 August 2018, respectively.