Money Mar­ket Re­port for the week end­ing 21 Septem­ber

The Malta Business Weekly - - MARKETS -

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.

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