Money Market Report for the week ending 30 August

ECB Monetary Operations

On 26 August, the European Central Bank announced its weekly main refinancing operations. The operation was conducted on 27 August and attracted bids from euro area eligible counterparties of €3.35bn, €0.37bn 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 August, the ECB conducted a threemonth, 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 €1.14bn from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.

Also on 28 August, the ECB conducted a sevenday US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.87bn, which was allotted in full at a fixed rate of 2.63%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills for settlement value 29 August, maturing on 28 November. Bids of €55m were submitted, with the Treasury accepting €10m. Since €7.5m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €2.5m, at €294.3m.

The yield from the 91-day bill auction was - 0.378%, a decrease of 0.1 basis point from bids with a similar tenor issued on 22 August, representing a bid price of €100.0956 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 91day and 182-day bills maturing on 5 December and 5 March 2020, respectively.