Money Market Report for the week ending 2 November
ECB Monetary Operations
On 29 October, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 30 October and attracted bids from euro area eligible counterparties of €8.01bn, €0.32bn higher than the bid amount of the previous week. The amount was allotted in full at a fixed rate equivalent to the prevail- ing MRO rate of 0.00%, in accordance with current ECB policy.
On 31 October 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 €1.49bn from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on 31 October 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 $0.08bn, which was allotted in full at a fixed rate of 2.70%.
Domestic Treasury Bill Market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 28- and 182day bills for settlement value 1 November, maturing on 29 November and 2 May 2019, respectively. Bids of €45m were submitted for the 28-day bills, with the Treasury accepting €14m, while bids of €57m were submitted for the 182-day bills, with the Treasury accepting €22m. Since €30m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €6m, to stand at €306m.
The yield from the 28-day bill auction was -0.355%, down by 0.1 basis point from bids with a similar tenor issued on 25 October, representing a bid price of €100.0276 per €100 nominal. The yield from the 182-day bill auction was -0.355%, unchanged from bids with a similar tenor also issued on 25 October, representing a bid price of €100.1798 per €100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
On Tuesday the Treasury invited tenders for 28- and 91-day bills maturing on 6 December and 7 February 2019, respectively.