Money Market Report for the week ending 8 October

ECB Monetary Operations

On 4 October the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was conducted on 5 October and attracted bids from euro area eligible counterparties of €232m, €85m more 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 6 October 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

$217m, which was allotted in full at a fixed rate of 0.33%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day bills and 91-day bills for settlement value 7 October, maturing on 4 November and 6 January 2022, respectively. Bids of €61m were submitted for the 28-day bills, with the Treasury accepting €5m, while bids of €82m were submitted for the 91-day bills, with the Treasury accepting €16m. Since €56m worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €35m, to stand at

€685.5m.

The yield from the 28-day bill auction was -0.445%, increasing by 4.5 basis points from bids with a similar tenor issued on 7 January, representing a bid price of €100.0346 per €100 nominal. The yield from the 91-day bill auction was -0.399%, decreasing by 0.4 basis point from bids with a similar tenor issued on 30 September, representing a bid price of €100.1010 per €100 nominal.

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

On Tuesday, the Treasury invited tenders for 28-day and 91-day bills maturing on 11 November and 13 January 2022, respectively.