Money Market Report for the week ending 16 November
ECB Monetary Operations
On 12 November, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 13 November and attracted bids from euro area eligible counterparties of €6.74bn, €0.18bn 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 14 November, the ECB conducted an eight-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.06bn, which was allotted in full at a fixed rate of 2.71%.
Domestic Treasury Bill Market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 27- and 272day bills for settlement value 15 November, maturing on 12 December and 14 August 2019, respectively. Bids of €32m were submitted for the 27-day bills, with the Treasury accepting €20m, while bids of €15.00m were sub- mitted for the 272-day bills, with the Treasury accepting all bids. Since €35m worth of bills matured during the week, the outstanding balance of Treasury bills remained unchanged at €307m.
The yield from the 27-day bill auction was -0.355%, unchanged from bids with a similar tenor also issued on 8 November, representing a bid price of €100.0266 per €100 nominal. Similarly, the yield from the 272-day bill auction was -0.348%, down by 2.5 basis points from bids with a similar tenor issued on 13 September, representing a bid price of €100.2636 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 28- and 91-day bills maturing on 20 December and 21 February 2019, respectively.