Money Market Report for the week ending 13 May

ECB Monetary Operations

On May 9, 2022, the European Central Bank (ECB) announced the 7-day main refinancing operation (MRO). The operation was conducted on May 10, 2022 and attracted bids from euro area eligible counterparties of €495.40 million, €53.60 million 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 May 11, 2022, the ECB conducted the 7-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $214.00 million, which was allotted in full at a fixed rate of 1.08%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182-day bills for settlement value May 12, 2022, maturing on August 11, and November 10, 2022, respectively. Bids of €21.00 million and €15.00 million were submitted for the 91-day and 182day bills, respectively, with the Treasury accepting all submitted bids. Since €40.00 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €4.00 million, standing at €823.40 million.

The yield from the 91-day bill auction was -0.285%, increasing by 1.3 basis points from bids with a similar tenor issued on May 5, 2022, representing a bid price of €100.0721 per €100 nominal. The yield from the 182-day bill auction was - 0.261%, increasing by 1.4 basis points from bids with a similar tenor issued on April 28, 2022, representing a bid price of €100.1321 per €100 nominal.

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

Today the Treasury will invite tenders for 91-day and 182-day bills maturing on August 18, and November 17, 2022, respectively.