Money Mar­ket Re­port for the week end­ing 11 May

The Malta Business Weekly - - FRONT PAGE -

On 7 May, the Eu­ro­pean Cen­tral Bank an­nounced its weekly main re­fi­nanc­ing op­er­a­tion. The op­er­a­tion was con­ducted on 8 May and at­tracted bids from euro area el­i­gi­ble coun­ter­par­ties of €2bn, €0.56bn 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 9 May, the ECB con­ducted a six-day US dollar fund­ing op­er­a­tion through col­lat­er­alised lend­ing in con­junc­tion with the US Fed­eral Re­serve. This op­er­a­tion at­tracted bids of $0.08bn, which was al­lot­ted in full at a fixed rate of 2.21%.

In the do­mes­tic pri­mary mar­ket for Trea­sury bills, the Trea­sury in­vited ten­ders for 91- and 182-day bills for set­tle­ment value 10 May, ma­tur­ing on 9 Au­gust and 8 Novem­ber, re­spec­tively. Bids of €40m were sub­mit­ted for the 91day bills, with the Trea­sury ac­cept­ing €17m, while bids of €37m were sub­mit­ted for the 182-day bills, with the Trea­sury ac­cept­ing €2.50m. Since €10m worth of bills ma­tured dur­ing the week, the out­stand­ing bal­ance of Trea­sury bills in­creased by €9.50m, to stand at €333.50m.

The yield from the 91-day bill auc­tion was -0.356%, down by 0.2 ba­sis point from bids with a sim­i­lar tenor is­sued on 3 May, rep­re­sent­ing a bid price of €100.0901 per €100 nom­i­nal. The yield from the 182day bill auc­tion was -0.355%, un­changed from bids with a sim­i­lar tenor also is­sued on 3 May, rep­re­sent­ing a bid price of €100.1798 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 182-day bills ma­tur­ing on 16 Au­gust and 15 Novem­ber, re­spec­tively.

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