Money Market Report for the week ending 3 November

ECB Monetary Operations

On 30 October the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was conducted on 31 October and attracted bids from euro area eligible counterparties of €8,127m, €2,363m 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.

Also on 31 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 $234.50m, 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 28-day and 182-day bills for settlement value 2 November, maturing on 30 November and 2 May 2024, respectively. Bids of €156.80m were submitted for the 28-day bills, with the Treasury accepting €10.80m, while bids of €56.36m were submitted for the 182-day bills, with the Treasury accepting €8.91m. Since €13.81m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €5.89m, to stand at €505.76m.

The yield from the 28-day bill auction was 3.272%, increasing by 272.20 basis points from bids with a similar tenor issued on 10 November, representing a bid price of €99.7462 per €100 nominal. The yield from the 182-day bill auction was 3.416%, decreasing by 1.60 basis points from bids with a similar tenor issued on 12 October, representing a bid price of €98.3023 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 7 December and 8 February 2024, respectively.