Money Market Report for week ending 8 December
ECB Monetary Operations
On 4 December, the European Central Bank announced its weekly main refinancing operation (MRO). The operation was conducted on 5 December and attracted bids from euro area eligible counterparties of €2.26bn, €2.74bn 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 6 December, 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 1.70%.
During the week under review, participants in the second, fourth and sixth series of targeted longer-term refinancing operations had the option of terminating or reducing their outstanding amount in these operations before maturity. Accordingly, on 20 December, a total of €2.75bn will be repaid.
Domestic Treasury Bill Market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91- and 181day bills for settlement value 7 December, maturing on 8 March and 6 June 2018, respectively. Bids of €55m were submitted for the 91-day bills, with the Treasury accepting €17.50m, while bids of €75m were submitted for the 181-day bills, with the Treasury accepting €5m. Since €17m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €5.50m, to stand at €197.90m.
The yield from the 91-day bill auction was -0.375%, unchanged from bids with a similar tenor issued on 30 November, representing a bid price of €100.0949 per €100 nominal. The yield from the 181-day bill auction was -0.336%, down by 1.0 basis point from bids with a similar tenor issued on 23 November, representing a bid price of €100.1692 per €100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
On Monday the Treasury invited tenders for 91- and 363-day bills maturing on 15 March and 12 December 2018, respectively.