Money Market Report for the week ending 7 May
On 3 May the European Central Bank (ECB) announced the seven-day main refinancing operations (MRO). The operation was conducted on 4 May and attracted bids from euro area eligible counterparties of €72m, €180m less than 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 5 May, the ECB conducted the eight-day and 84day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. The eight-day USD operation attracted bids of $43m, which was allotted in full at a fixed rate of 0.32%. The 84-day USD operation attracted bids of $5m, which was also allotted in full at a fixed rate of 0.33%.
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills and 273-day bills for settlement value 6 May, maturing on 5 August and 3 February 2022, respectively. Bids of €107m were submitted for the 91-day bills, with the Treasury accepting €15m, while bids of €106m were submitted for the 273-day bills, with the Treasury accepting €37m. Since €40m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €12m, to stand at €831.75m.
The yield from the 91-day bill auction was -0.464%, a decrease of 0.7 basis point from bids with a similar tenor issued on 29 April, representing a bid price of €100.1174 per €100 nominal. The yield from the 273-day bill auction was -0.449%, a decrease of 0.5 basis point from bids with a similar tenor issued on 22 April, representing a bid price of €100.3417 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 12 August and 11 November, respectively.