Money Market Report for the week ending 2 February 2018

ECB Monetary Operations

On 29 January, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 30 January and attracted bids from euro area eligible counterparties of €1.91bn, €0.25bn 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 31 January, the ECB conducted a three-month, longerterm refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average rate of the MROs over the life of the operation. The operation attracted bids of €2.52bn from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.

Also on 31 January, 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 1.93%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills for settlement value 1 February, maturing on 3 May. Bids of €60m were submitted, with the Treasury accepting €15m. Since €23m worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €8m, to stand at €184m.

The yield from the 91-day bill auction was -0.381%, down by 0.2 basis point from bids with a similar tenor issued on 25 January, representing a bid price of €100.0964 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 91- and 273-day bills maturing on 10 May and 8 November, respectively.