Money Market Report for the week ending 16 September

ECB Monetary Operations

On Monday, 12 September, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on Tuesday, 13 September and attracted bids from euro area eligible counterparties of €41.58bn, €0.20bn 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 0.00%, in accordance with current ECB policy.

On Wednesday, 14 September, 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 ratio of 0.92% and did not attract bids from euro area eligible counterparties.

During the week under review, participants in the first series of targeted longer-term refinancing operations shall have, on a semiannual basis, the option of terminating or reducing their outstanding amount in these operations before maturity. Accordingly on 28 September, a total of €9.36bn will be repaid.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day maturing on 15 December. Bids of €55m were submitted for the 91-day bills, with the Treasury accepting €15m. Since €20m worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €5m, to stand at €269.75m.

The yield from the 91-day bill auction was -0.387%, down by 2.4 basis points from bids with a similar tenor issued on 7 September, representing a bid price of 100.0979 per 100 nominal.

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

This week the Treasury will invite tenders for 91- and 273-day bills maturing on 22 December and 22 June 2017, respectively.