Money Mar­ket Re­port for the week end­ing 3 Novem­ber

The Malta Business Weekly - - FRONT PAGE -

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.

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