Money Market Report for the week ending 16 February

ECB Monetary Operations

On 12 February, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 13 February and attracted bids from euro area eligible counterparties of €1.32bn, €0.23bn 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 14 February, the ECB conducted a seven-day US dollar fund- ing operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.06bn, which was allotted in full at a fixed rate of 1.92%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills for settlement value 15 February, maturing on 17 May. Bids of €45m were submitted, with the Treasury accepting €20m. Since €20m worth of bills matured during the week, the outstanding balance of Treasury bills remained unchanged at €194m.

The yield from the 91-day bill auction was -0.372%, up by 1.1 basis points from bids with a similar tenor issued on 8 February, representing a bid price of €100.0941 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 182-day bills maturing on 22 March and 23 August, respectively.