Money Market Report for the week ending 12 January
ECB Monetary Operations
On 8 January the European Central Bank (ECB) announced the seven-day main refinancing operations (MRO). The operation was conducted on 9 January and attracted bids from euro area eligible counterparties of €5,960m, €1,414.50m 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 10 January the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $216m, 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 11 January, maturing on 11 April and 11 July, respectively. Bids of €70.87m were submitted for the 91-day bills, with the Treasury accepting €12.33m, while bids of €11.48m were submitted for the 182-day bills, with the Treasury accepting €9.70m. Since €22.42m worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €0.39m, to stand at €656.84m.
The yield from the 91-day bill auction was 3.546%, decreasing by 5.10 basis points from bids with a similar tenor issued on 4 January, representing a bid price of €99.1116 per €100 nominal. The yield from the 182-day bill auction was 3.467%, increasing by 1.80 basis points from bids with a similar tenor also issued on 4 January, representing a bid price of €98.2774 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 18 April and 18 July, respectively.