Money Market Report for the week ending 10 November

ECB Monetary Operations

On 6 November, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 7 November and attracted bids from euro area eligible counterparties of €2.70bn, €0.29bn 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 8 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 273day bills for settlement value 9 November, maturing on 7 December and 9 August 2018, respectively. Bids of €50m were submitted for the 28-day bills, with the Treasury accepting €15m, while bids of €67m were submitted for the 273-day bills, with the Treasury accepting €10m. Since €15m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €10m, to stand at €175.40m.

The yield from the 28-day bill auction was -0.380%, up by 0.3 basis point from bids with a similar tenor issued on 2 November, representing a bid price of €100.0296 per €100 nominal. The yield from the 273-day bill auction was -0.320%, down by 3.0 basis points from bids with a similar tenor issued on 17 August, representing a bid price of €100.2433 per €100 nominal.

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

On Tuesday the Treasury invited tenders for 28- and 91-day bills maturing on 14 December and 15 February 2018, respectively.