Money Market Report for the week ending 1 December

ECB Monetary Operations

On November 27, 2023, the European Central Bank (ECB) announced the 7-day main refinancing operation (MRO). The operation was conducted on November 28, 2023 and attracted bids from euro area eligible counterparties of €8,471.50 million, €1,136.50 million 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 November 29, 2023, the ECB conducted the threemonth, longer-term refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average MRO rate over the life of the operation. The operation attracted bids of €2,333.00 million from euro area eligible counterparties.

Also on November 29, 2023, the ECB conducted a 7-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $238.00 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 29-day and 91-day bills for settlement value November 30, 2023, maturing on December 29, 2023 and February 29, 2024, respectively. Bids of €89.51 million were submitted for the 29-day bills, with the Treasury accepting €6.51 million, while bids of €93.84 million were submitted for the 91-day bills, with the Treasury accepting €43.64 million. Since €50.61 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €0.46 million, standing at €547.43 million.

The yield from the 29-day bill auction was 3.827%, increasing by 16.20 basis points from bids with a similar tenor issued on November 16, 2023, representing a bid price of €99.6927 per €100 nominal. The yield from the 91-day bill auction was 3.599%, decreasing by 4.50 basis points from bids with a similar tenor issued on November 23, 2023, representing a bid price of €99.0985 per €100 nominal.

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

On Tuesday the Treasury invited tenders for 91-day and 182-day bills maturing on March 7, and June 6, 2024, respectively.