Money Market Report for the week ending 20 July

ECB Monetary Operations

On 16 July, the European Central Bank announced its weekly main refinancing operation (MRO). The operation was conducted on 17 July and attracted bids from euro area eligible counterparties of €1.96bn, €0.05bn higher than the bid amount of the previous week. The amount was allotted in full at a fixed rate equivalent to the pre- vailing MRO rate of 0.00%, in accordance with current ECB policy.

On 18 July, 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 $0.12bn, which was allotted in full at a fixed rate of 2.42%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 91day bills for settlement value 19 July, maturing on 16 August and 18 October, respectively. Bids of €30m were submitted for the 28day bills, with the Treasury accepting €4m, while bids of €40m were submitted for the 91- day bills, with the Treasury accepting €25m. Since €23m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €6m, to stand at €365m.

The yield from the 28-day bill auction was -0.355%, up by 1.3 basis points from bids with a similar tenor issued on 12 April, representing a bid price of €100.0276 per €100 nominal. The yield from the 91-day bill auction was also - 0.355%, down by 0.2 basis point from bids with a similar tenor issued on 12 July, representing a bid price of €100.0898 per €100 nominal.

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

Today the Treasury will invite tenders for 91-day bills maturing on 25 October.