Money Mar­ket Re­port for the week end­ing 19 Oc­to­ber

The Malta Business Weekly - - MARKETS -

ECB Mone­tary Op­er­a­tions

On 15 Oc­to­ber, the Euro­pean Cen­tral Bank an­nounced its weekly main re­fi­nanc­ing oper­a­tion. The oper­a­tion was con­ducted on 16 Oc­to­ber and at­tracted bids from euro area el­i­gi­ble coun­ter­par­ties of €7.86bn, €0.56bn 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 17 Oc­to­ber, 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 $0.08bn, which was al­lot­ted in full at a fixed rate of 2.69%.

Do­mes­tic Trea­sury Bill Mar­ket

In the do­mes­tic pri­mary mar­ket for Trea­sury bills, the Trea­sury in­vited ten­ders for 28- and 91-day bills for set­tle­ment value 18 Oc­to­ber, ma­tur­ing on 15 Novem­ber and 17 Jan­uary 2019, re­spec­tively. Bids of €40m were sub­mit­ted for the 28-day bills, with the Trea­sury ac­cept­ing €15m, while bids of €55m were sub­mit­ted for the 91- day bills, with the Trea­sury ac­cept­ing €21m. Since €31m worth of bills ma­tured dur­ing the week, the out­stand­ing bal­ance of Trea­sury bills in­creased by €5m, to stand at €300m.

The yield from the 28-day bill auc­tion was -0.355%, up by 0.1 ba­sis point from bids with a sim­i­lar tenor is­sued on 11 Oc­to­ber, rep­re­sent­ing a bid price of €100.0276 per €100 nom­i­nal. The yield from the 91-day bill auc­tion was - 0.355%, a de­crease of 0.1 ba­sis point from bids with a sim­i­lar tenor is­sued on 27 Septem­ber, rep­re­sent­ing a bid price of €100.0898 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-day bills and 182-day bills ma­tur­ing on 22 Novem­ber and 25 April 2019, re­spec­tively.

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