Money Market Report for the week ending 11 May

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.