Money Market Report for the week ending 17 January

ECB Monetary Operations

On 13 January, the European Central Bank announced a seven-day main refinancing operations. The operation was conducted on 14 January and attracted bids from euro area eligible counterparties of €0.82bn, €0.28bn less 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 15 January, 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 $0.05bn, which was allotted in full at a fixed rate of 2.05%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills for settlement value 16 January, maturing on 16 April. Bids of €50m were submitted, with the Treasury accepting €20m. Since there were no maturities, the outstanding balance of Treasury bills increased by €20m, standing at €342m.

The yield from the 91-day bill auction was -0.438%, a decrease of 0.3 basis point from bids with a similar tenor issued on 9 January, representing a bid price of €100.1108 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 91-day bills and 182-day bills maturing on 23 April and 23 July, respectively.