Money Market Report for the week ending 23 February

ECB Monetary Operations

On 19 February, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 20 February and attracted bids from euro area eligible counterparties of €1.54bn, €0.22bn 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 21 February, the ECB con- ducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.07bn, which was allotted in full at a fixed rate of 1.91%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders 28- and 182-day bills for settlement value 22 February, maturing on 22 March and 23 August, respectively. Bids of €35m were submitted for the 28-day bills, with the Treasury accepting €2m, while bids of €55m were submitted for the 182-day bills, with the Treasury accepting €20m. Since no bills matured during the week, the outstanding balance of Treasury bills increased by €22m, to stand at €216m.

The yield from the 28-day bill auction was -0.375%, up by 0.3 basis point from bids with a similar tenor issued on 30 November 2017, representing a bid price of €100.0292 per €100 nominal. The yield from the 182day bill auction was -0.367%, down by 2.4 basis points from bids with a similar tenor issued on 25 January, representing a bid price of €100.1859 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-day bills maturing on 31 May.