Money Market Report for the week ending 18 May

ECB Monetary Operations

On 14 May, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 15 May and attracted bids from euro area eligible counterparties of €2.01bn, €0.004bn 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 16 May, 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 $0.08bn, 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 for 91- and 182-day bills for settlement value 17 May, maturing on 16 August and 15 November, respectively. Bids of €40m were submitted for the 91day bills, with the Treasury accepting €20m, while bids of €37m were submitted for the 182-day bills, with the Treasury accepting €2.5m. Since €22m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €0.50m, to stand at €334m.

The yield from the 91-day bill auction was -0.358%, down by 0.2 basis point from bids with a simi- lar tenor issued on 10 May, representing a bid price of €100.0906 per €100 nominal. The yield from the 182-day bill auction was - 0.357%, a drop of 0.2 basis point from bids with a similar tenor also issued on 10 May, representing a bid price of €100.1808 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 182-day bills maturing on 23 August and 22 November, respectively.