Money Market Report for the week ending 23 November

ECB Monetary Operations

On 19 November, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 20 November and attracted bids from euro area eligible counterparties of €6.35bn, €0.38bn lower 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 21 November, 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 $0.07bn, which was allotted in full at a fixed rate of 2.70%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 91day bills for settlement value 22 November, maturing on 20 December and 21 February 2019, respectively. Bids of €46m were submitted for the 28-day bills, with the Treasury accepting €14.3m, while bids of €51m were submitted for the 91-day bills, with the Treasury accepting €24.8m. Since €36m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €3.1m, to stand at €310.1m.

The yield from the 28-day bill auction was -0.355%, unchanged from bids with a similar tenor also issued on 15 November, representing a bid price of €100.0276 per €100 nominal. Similarly, the yield from the 91-day bill auction was -0.355%, also unchanged from bids with a similar tenor issued on 8 November, 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 29-day bills maturing on 28 December.