Money Market Report for the week ending 24 November

ECB Monetary Operations

On 20 November the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was conducted on 21 November and attracted bids from euro area eligible counterparties of €7,335m, €230m more 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 22 November the ECB conducted a six-day US dollar funding operation through collateralised lending in conjunction with the US Federal

Reserve. This operation attracted bids of $232m, 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 23 November, maturing on 22 February and 23 May 2024, respectively. Bids of €139.96m were submitted for the 91-day bills, with the Treasury accepting €41.80m, while bids of €49.56m were submitted for the 182-day bills, with the Treasury accepting €10.56m.

Since €36.32m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €16.04m, standing at €547.89m.

The yield from the 91-day bill auction was 3.644%, increasing by 8.50 basis points from bids with a similar tenor issued on 16 November, representing a bid price of €99.0873 per €100 nominal. The yield from the 182-day bill auction was 3.540%, increasing by 12.40 basis points from bids with a similar tenor issued on 2 November, representing a bid price of €98.2418 per €100 nominal.

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

On Tuesday the Treasury invited tenders for 29-day and 91-day bills maturing on 29 December and 29 February 2024, respectively.