Money Market Report for the week ending 14 June

ECB Monetary Operations

On June 10, 2019, the European Central Bank (ECB) announced its weekly main refinancing operations (MRO). The operation was conducted on June 11, 2019, and attracted bids from euro area eligible counterparties of €5.98 billion, €0.70 billion 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 June 12, 2019, the ECB conducted a sevenday US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.02 billion, which was allotted in full at a fixed rate of 2.87%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182-day bills for settlement value June 13, 2019, maturing on September 12, and December 12, 2019, respectively. Bids of €44.00 million were submitted for the 91-day bills, with the Treasury accepting €17.00 million, while bids of €42.00 million were submitted for the 182-day bills, with the Treasury accepting €3.00 million. Since €19.20 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €0.80 million, at €329.50 million.

The yield from the 91-day bill auction was - 0.359%, a decrease of 0.1 basis point from bids with a similar tenor issued on June 6, 2019, representing a bid price of €100.0908 per €100 nominal. The yield from the 182-day bill auction was -0.340%, a decrease of 2.5 basis points from bids with a similar tenor issued on May 30, 2019, representing a bid price of €100.1722 per €100 nominal.

During the week under review, there was no trading on the Malta Stock Exchange.

On Tuesday the Treasury invited tenders for 91day and 182-day bills maturing on September 19, and December 19, 2019, respectively.