Money Market Report for the week ending 9 February

ECB Monetary Operations

On 5 February, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 6 February and attracted bids from euro area eligible counterparties of €1.55bn, €0.35bn 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 7 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 $0.06bn, which was allotted in full at a fixed rate of 1.92%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders 91-day and 273day bills for settlement value 8 February, maturing on 10 May and 8 November, respectively. Bids of €35m were submitted for the 91-day bills, with the Treasury accepting €7m, while bids of €40m were submitted for the 273day bills, with the Treasury accepting €3m. Since no bills matured during the week, the outstanding balance of Treasury bills increased by €10m, to stand at €194m.

The yield from the 91-day bill auction was -0.383%, down by 0.2 basis point from bids with a similar tenor issued on 1 February, representing a bid price of €100.0969 per €100 nominal. The yield from the 273-day bill auction was - 0.380%, down by 4.5 basis points from bids with a similar tenor issued on 18 January, representing a bid price of €100.2890 per €100 nominal.

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

On Tuesday the Treasury invited tenders for 91-day maturing on 17 May.