Money Market Report for the week ending 4 May

ECB Monetary Operations

On 30 April, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 2 May and attracted bids from euro area eligible counterparties of €2.56bn, €0.24bn 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 2 May, the ECB conducted an eight-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This opera- tion attracted bids of $0.08bn, which was allotted in full at a fixed rate of 2.21%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders 91-day and 182day bills for settlement value 3 May, maturing on 2 August and 1 November, respectively. Bids of €34m were submitted for the 91day bills, with the Treasury accepting €22m, while bids of €30m were submitted for the 182-day bills, with the Treasury accepting €4m. Since €15m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €11m, to stand at €324m.

The yield from the 91-day bill auction was -0.354%, unchanged from bids with a similar tenor issued on 26 April, representing a bid price of €100.0896 per €100 nominal. The yield from the 182day bill auction was -0.355%, up by 0.1 basis point from bids with a similar tenor also issued on 26 April, representing a bid price of €100.1798 per €100 nominal.

During the week under review, there was no trading on the Malta Stock Exchange.

On Tuesday the Treasury invited tenders for 91- and 182-day bills maturing on 9 August and 8 November, respectively.