Money Market Report for the week ending 26 June
ECB Monetary Operations
On 19 June, the European Central Bank announced a seven-day Main Refinancing Operation. The operation was conducted on 22 June and attracted bids from euro area eligible counterparties of €0.67bn, €0.20bn 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.
Also on 22 June, the ECB conducted the Pandemic Emergency Longer-term Refinancing Operation (PELTRO) maturing on 30 September 2021, which attracted bids from euro area eligible counterparties of €15.61bn. This operation was carried out through a fixed rate tender procedure with full allotment, with an interest rate that is equal to 25 basis points below the average MRO rate over the life of the PELTRO.
On 24 June, the ECB conducted an 84-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $1.35bn, which was allotted in full at a fixed rate of 0.32%.
On 25 June, the ECB conducted a three-month, longer-term refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average MRO rate over the life of the operation. The operation attracted bids of €1.29bn from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
During the week under review, the ECB conducted five seven-day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. These operations attracted total bids of $0.39bn, at the rates of 0.33% and 0.34%.
Domestic Treasury Bill Market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills and 364-day bills for settlement value 25 June, maturing on 24 September and 24 June 2021, respectively. Bids of €149.50m were submitted for the 91-day bills, with the Treasury accepting €35m, while bids of €162m were submitted for the 364day bills, with the Treasury accepting €5m. Since €20m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €20m to stand at €855m.
The yield from the 91-day bill auction was -0.440%, a decrease of 5.4 basis points from bids with a similar tenor issued on 18 June, representing a bid price of €100.1113 per €100 nominal. The yield from the 364-day bill auction was -0.364%, a decrease of 21.3 basis points from bids with a similar tenor issued on 21 May, representing a bid price of
€100.3694 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 182-day bills and 364day bills maturing on 31 December and 1 July 2021, respectively.