Money Mar­ket Re­port for the week end­ing 25 May

The Malta Business Weekly - - FRONT PAGE -

ECB Mone­tary Op­er­a­tions

On 21 May the Euro­pean Cen­tral Bank an­nounced its weekly main re­fi­nanc­ing oper­a­tion. The oper­a­tion was con­ducted on 22 May and at­tracted bids from euro area el­i­gi­ble coun­ter­par­ties of €2.14bn, €0.13bn 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 23 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 $0.06bn, 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 24 May, ma­tur­ing on 23 Au­gust and 22 Novem­ber re­spec­tively. Bids of €35m were submitted for the 91day bills, with the Trea­sury ac­cept­ing €12m. Sim­i­larly, bids of €35m were submitted for the 182day bills, with the Trea­sury ac­cept­ing €3m. Since €20m worth of bills ma­tured dur­ing the week, the out­stand­ing bal­ance of Trea­sury bills de­creased by €5m, to stand at €329m.

The yield from the 91-day bill auc­tion was -0.360%, down by 0.2 ba­sis point from bids with a sim­i­lar tenor is­sued on 17 May, rep­re­sent­ing a bid price of €100.0911 per €100 nom­i­nal. The yield from the 182-day bill auc­tion was -0.357%, un­changed from bids with a sim­i­lar tenor also is­sued on 17 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.

On Tues­day the Trea­sury in­vited ten­ders for 91- and 182-day bills ma­tur­ing on 30 Au­gust and 29 Novem­ber, re­spec­tively.

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