Money Market Report for the week ending 2 February

ECB Monetary Operations

On January 29, 2024, the European Central Bank (ECB) announced the 7-day main refinancing operations (MRO). The operation was conducted on January 30, 2024, and attracted bids from euro area eligible counterparties of €6,377.00 million, €728.00 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.

Also on January 30, 2024, 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 €1,258.00 million from euro area eligible counterparties.

On January 31, 2024, 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 $227.00 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 91-day and 182-day bills for settlement value February 1, 2024, maturing on May 2, and August 1, 2024, respectively. Bids of €78.72 million were submitted for the 91-day bills, with the Treasury accepting €15.34 million, while bids of €20.96 million were submitted for the 182-day bills, with the Treasury accepting €16.60 million. Since €6.89 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €25.04 million, standing at €716.82 million.

The yield from the 91-day bill auction was 3.508%, decreasing by 0.30 basis point from bids with a similar tenor issued on January 25, 2024, representing a bid price of €99.1210 per €100 nominal. The yield from the 182-day bill auction was 3.460%, increasing by 1.90 basis points from bids with a similar tenor issued on January 18, 2024, representing a bid price of €98.2808 per €100 nominal.

During this week, secondary market turnover in Malta Government Treasury bills amounted to €9,000, all executed on the On-exchange market of the Malta Stock Exchange.

On Tuesday the Treasury invited tenders for 91-day and 182-day bills maturing on May 9, and August 8, 2024, respectively.