Money Market Report for the week ending 25 May

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.