Money Market Report for the week ending 30 November
ECB Monetary Operations
On 26 November, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 27 November and attracted bids from euro area eligible counterparties of €6.54bn, €0.18bn higher 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 28 November, the ECB conducted a three-month, longer- term refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average rate of the MROs over the life of the operation. The operation attracted bids of €1.95bn from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on 28 November, 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 $0.19bn, which was allotted in full at a fixed rate of 2.72%.
Domestic Treasury Bill Market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 29-day bills for settlement value 29 November, maturing on 28 December. Bids of €70m were submitted, with the Treasury accepting €17m. Since €37m worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €20m, to stand at €290.1m.
The yield from the 29-day bill auction was -0.356%, a decrease of 0.1 basis point from bids with a similar tenor also issued on 22 November, representing a bid price of €100.0287 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-day and 182day bills maturing on 7 March and 6 June 2019, respectively.