Money Market Report for the week ending 13 October

ECB Monetary Operations

On October 9, 2023, the European Central Bank (ECB) announced the 7-day main refinancing operation (MRO). The operation was conducted on October 10, 2023, and attracted bids from euro area eligible counterparties of €7,498.00 million, €299.00 million less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 4.50%, in accordance with current ECB policy.

On October 11, 2023, 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 $230.50 million, which were allotted

in full at a fixed rate of 5.58%.

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 October 12, 2023, maturing on January 11, and April 11, 2024, respectively. Bids of €151.12 million were submitted for the 91-day bills, with the Treasury accepting €12.86 million, while bids of €44.51 million were submitted for the 182-day bills, with the Treasury accepting €6.51 million. Since €29.64 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €10.27 million, standing at €496.38 million.

The yield from the 91-day bill auction was 3.524%, decreasing by 0.80 basis point from bids with a similar tenor issued on October 5, 2023, representing a bid price of €99.1171 per €100 nominal. The yield from the 182-day bill auction was 3.432%, increasing by 0.90 basis point from bids with a similar tenor also issued on October 5, 2023, representing a bid price of €98.2945 per €100 nominal.

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

On Tuesday the Treasury invited tenders for 91-day and 364-day bills maturing on January 18, and October 17, 2024, respectively.