Money Market Report for the week ending 9 July

ECB Monetary Operations

On 5 July, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on 6 July and attracted bids from euro area eligible counterparties of €72m, €13m 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 7 July, the ECB conducted the seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $121.70m, which was allotted in full at a fixed rate of 0.35%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills and 273-day bills for settlement value 8 July, maturing on 7 October and 7 April 2022, respectively. Bids of €95m were submitted for the 91-day bills, with the Treasury accepting €45m, while bids of €100m were submitted for the 273-day bills, with the Treasury accepting

€25m. Since €50m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €20m, to stand at €806.75m.

The yield from the 91-day bill auction was -0.453%, unchanged from bids with a similar tenor issued on 1 July, representing a bid price of €100.1146 per €100 nominal. The yield from the 273-day bill auction was -0.450%, up by 1.1 basis points from bids with a similar tenor issued on 3 June, representing a bid price of €100.3424 per €100 nominal.

During this week, there was no trading on the Malta Stock Exchange.

This week the Treasury will invite tenders for 91-day and 182-day bills to mature on 14 October and 13 January 2022, respectively.