Money Market Report for the week ending 19 October

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.