Money Mar­ket Re­port for the week end­ing 2 Novem­ber

The Malta Business Weekly - - MARKETS -

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.

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