Money Market Report for the week ending 21 September
ECB Monetary Operations
On 17 September, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 18 September and attracted bids from euro area eligible counterparties of €4.96bn, €0.74bn 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 the current ECB policy.
On 19 September, 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 $0.09bn, which was allotted in full at a fixed rate of 2.46%.
During the week under review, participants in the first and second operations from the second series of targeted longer-term refinancing operations had the option of terminating or reducing their outstanding amount in these operations before maturity. Accordingly, on 26 September, a total of €3.63bn will be repaid.
Domestic Treasury Bill Market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills for settlement value 20 September, maturing on 20 December. Bids of €38m were submitted, with the Treasury accepting €23m. Since €27m worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €4m, to stand at €330.5m.
The yield from the 91-day bill auction was -0.354%, up by 0.4 basis point from bids with a similar tenor issued on 13 September, representing a bid price of €100.0896 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 92-day bills maturing on 28 December.