Money Market Report for the week ending 29 June

ECB Monetary Operations

On 25 June the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 26 June and attracted bids from euro area eligible counterparties of €2.74bn, €1.19bn 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 27 June the ECB conducted a three-month, longer-term refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average rate of the MROs over the life of the operation. The operation attracted bids of €2.27bn from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.

Also on 27 June, the ECB conducted an eight-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $1.09bn, which was allotted in full at a fixed rate of 2.43%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91- and 183-day bills for settlement value 28 June, maturing on 27 September and 28 December, respectively. Bids of €30m were submitted for the 91day bills, with the Treasury accepting €20m, while bids of €20m were submitted for the 183-day bills, with the Treasury accepting €2m. Since €20m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €2m, to stand at €335m.

The yield from the 91-day bill auction was -0.354%, unchanged from bids with a similar tenor issued on 21 June, representing a bid price of €100.0896 per €100 nominal. The yield from the 183day bill auction was -0.357%, up by 0.2 basis point from bids with a similar tenor also issued on 21 June, representing a bid price of €100.1818 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 273-day bills maturing on 4 October and 4 April 2019, respectively.