Money Market Report for the week ending 8 November

ECB Monetary Operations

On 4 November, the European Central Bank announced its weekly main refinancing operations. The operation was conducted on 5 November and attracted bids from euro area eligible counterparties of €1.56bn, €0.68bn lower 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 6 November, 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 2.07%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 91day bills for settlement value 7 November, maturing on 5 December and 6 February 2020, respectively. Bids of €45m were submitted for the 28-day bills, with the Treasury accepting €18m, while bids of €40m were submitted for the 91-day bills, with the Treasury accepting €12m. Since €29m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €1m, at €291.3m.

The yield from the 28-day bill auction was -0.406%, a decrease of 0.1 basis point from bids with a similar tenor issued on 31 October, representing a bid price of €100.0316 per €100 nominal. The yield from the 91-day bill auction was -0.410%, unchanged from bids with a similar tenor issued on 24 October, representing a bid price of €100.1037 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-day and 91-day bills maturing on 12 December and 13 February 2020, respectively.