Money Market Report for the week ending 7 February

ECB Monetary Operations

On 3 February, the European Central Bank announced a seven-day main refinancing operations. The operation was conducted on 4 February and attracted bids from euro area eligible counterparties of €0.84bn, €0.76bn less 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 5 February, 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 $0.05bn, which was allotted in full at a fixed rate of 2.09%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182day bills for settlement value 6 February, maturing on 7 May and 6 August, respectively. Bids of €40m were submitted for the 91-day bills, with the Treasury accepting €30m, while bids of €38m were submitted for the 182-day bills, with the Treasury accepting €5m. Since €12m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €23m, standing at €388m.

The yield from the 91-day bill auction was -0.433%, an increase of 0.4 basis point from bids with a similar tenor issued on 30 January, representing a bid price of €100.1096 per €100 nominal. The yield from the 182-day bill auction was -0.415%, a decrease of 0.2 basis point from bids with a similar tenor issued on 23 January, representing a bid price of €100.2102 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 bills maturing on 14 May.