Money Market Report for the week ending 14 February

ECB Monetary Operations

On 10 February, the European Central Bank announced a sevenday main refinancing operations. The operation was conducted on 11 February and attracted bids from euro area eligible counterparties of €0.90bn, €0.06bn more 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 12 February, 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 $0.06bn, which was allotted in full at a fixed rate of 2.08%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills for settlement value 13 February, maturing on 14 May. Bids of €15m were submitted for the 91-day bills, with the Treasury accepting €13m. Since €13m worth of bills matured during the week, the outstanding balance of Treasury bills remained unchanged at €388m.

The yield from the 91-day bill auction was -0.436%, a decrease of 0.3 basis point from bids with a similar tenor issued on 6 February, representing a bid price of €100.1103 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 273-day bills maturing on 21 May and 19 November, respectively.