Money Market Report for the week ending 17 February

ECB Monetary Operations

On 13 February, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on 14 February and attracted bids from euro area eligible counterparties of €28.01bn, €1.59bn 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 15 February, 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 $0.14bn, which was allotted in full at a fixed rate of 1.16%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91- and 182day bills for settlement value 16 February, maturing on 18 May and 17 August, respectively. Bids of €15m were submitted for the 91-day bills, with the Treasury accepting €3m, while no bids were submitted for the 182-day bills. Since €22m worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €19m, to stand at €267.20m.

The yield from the 91-day bill auction was -0.350%, unchanged from bids with a similar tenor issued on 9 February, representing a bid price of €100.0886 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 28- and 182-day bills maturing on 23 March and 24 August, respectively.