Money Market Report for the week ending 11 October

ECB Monetary Operations

On 7 October, the European Central Bank announced its weekly main refinancing operations. The operation was conducted on 8 October and attracted bids from euro area eligible counterparties of €2.29bn, €0.47bn higher than the bid amount of the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 0.00%, in accordance with current ECB policy.

On 9 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 $0.04bn, which was allotted in full at a fixed rate of 2.35%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 182day bills for settlement value 10 October, maturing on 7 November and 9 April 2020, respectively. Bids of €32m were submitted for the 28-day bills, with the Treasury accepting €9m, while bids of €36m were submitted for the 182-day bills, with the Treasury accepting €26m. Since €28m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €7m, at €281.3m.

The yield from the 28-day bill auction was -0.404%, an increase of 1.3 basis points from bids with a similar tenor issued on 3 October, representing a bid price of €100.0314 per €100 nominal. The yield from the 182-day bill auction was -0.367%, an increase of 4.3 basis points from bids with a similar tenor issued on 19 September, representing a bid price of €100.1859 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-day and 273day bills maturing on 14 November and 16 July 2020, respectively.