Money Market Report for the week ending June13

ECB Monetary Operations On Monday, June 9, the European Central Bank (ECB)announced its weeklymain refinancing operation (MRO).The auction was conducted on Tuesday, June10, and attracted bids from euro area eligible counterparties of €136.77 billion, €12.58billion lower than the bid amount of the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 0.15%, in accordance with current ECB policy.

Also on Tuesday, June 10, the ECB conducted a special term refinancing operation with a maturity of 28 days. This attracted bids of €9.97 billion, which was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 0.15%, also in accordance with current ECB policy.

Furthermore on Tuesday, June10, the ECB conducted an auction for a seven-day fixedterm deposit intended to absorb €162.50billion. This operation was designed to sterilise the effect of purchases made under the Securities Markets Programme that were settled but had not yet matured by the previous Friday, June 6. The auction was carried out at a variable rate, with euro area eligible counterparties allowed to place up to four bids at a maximum rate of 0.15%. It attracted bids amounting to €108.65 billion, with the ECB allotting the full amount. The marginal rate on the auction was set at 0.15%, with the weighted average rate at 0.13%.

On Wednesday, June11, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation was carried out at a fixed rate of 0.59% and once again did not attract bids from euro area eligible counterparties. Domestic Treasury Bill Market In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182-day bills maturing on September12 and December12, 2014, respectively. Bids of €25.00 million were submitted for the 91day bills, with the Treasury accepting €13.00 million, while bids of €60.25 million were submitted for the 182-day bills, with the Treasury accepting €17.00 million. Since €8.50 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €21.50 million, to stand at €388.87 million.

The yield from the 91-day bill auction was 0.207%, i.e. 17.80 basis pointslower than on bills with a similar tenor issued on June6, 2014, representing a bid price of 99.9477 per 100 nominal. The yield from the 182-day bill auction was 0.399%, i. e. 21.30 basis points lower than on bills with a similar tenor issued on June6, 2014, representing a bid price of 99.7987 per 100 nominal.

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

On Tuesday the Treasury invited tenders for 28-day and 182day bills maturing on July18 and December19, 2014, respectively.