Money Market Report for week ending 24 November

ECB Monetary Operations

On 20 November, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 21 November and attracted bids from euro area eligible counterparties of €2.98bn, €0.13bn higher 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 22 November, the ECB conducted a six-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 1.64%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 28- and 182day bills for settlement value 23 November, maturing on 21 December and 24 May 2018, respectively. Bids of €35m were submitted for the 28-day bills, with the Treasury accepting €8m, while bids of €65m were submitted for the 182-day bills, with the Treasury accepting €20m. Since €22m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €6m, to stand at €189.4m.

The yield from the 28-day bill auction was -0.375%, up by 1.0 basis point from bids with a similar tenor issued on 16 November, representing a bid price of €100.0292 per €100 nominal. The yield from the 182-day bill auction was -0.326%, down by 0.1 basis point from bids with a similar tenor issued on 19 October, representing a bid price of €100.1651 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 29- and 91-day bills maturing on 29 December and 1 March 2018, respectively.