Money Market Report for the week ending 24 August

ECB Monetary Operations

On 20 August, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 21 August and attracted bids from euro area eligible counterparties of €2.79bn, €0.05bn higher than the bid amount of the previous week. The amount was allotted in full at a fixed rate equivalent to the pre- vailing MRO rate of 0.00%, in accordance with current ECB policy.

On 22 August, 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 $0.09bn, which was allotted in full at a fixed rate of 2.42%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91- and 364day bills for settlement value 23 August, maturing on 22 November and 22 August 2019, respectively. Bids of €39m were submitted for the 91-day bills, with the Treasury accepting €22m, while bids of €22m were submitted for the 364-day bills, with the Treasury accepting €3m. Since €32m worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €7m, to stand at €356.6m.

The yield from the 91-day bill auction was -0.358%, down by 0.2 basis point from bids with a similar tenor issued on 16 August, representing a bid price of €100.0906 per €100 nominal. The yield from the 364-day bill auction was - 0.289%, up by 1.1 basis points from bids with a similar tenor issued on 14 December 2017, representing a bid price of €100.2931 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 91-day bills maturing on 27 September and 29 November, respectively.