Money Market Report for the week ending 29 May
ECB Monetary Operations
On 25 May, the European Central Bank announced a seven-day Main Refinancing Operation. The operation was conducted on 26 May and attracted bids from euro area eligible counterparties of €0.45bn, €0.27bn more 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 26 May, the ECB conducted the additional longer-term refinancing operation maturing on 24 June, which attracted bids from euro area eligible counterparties of €18.54bn. This operation was carried out through a fixed rate tender procedure with full allotment, with an interest rate that is equal to the average deposit facility rate during the life of the operation.
On 27 May, 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 MRO rate over the life of the operation. The operation attracted bids of €0.57bn from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on 27 May, the ECB conducted an 84-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $1.51bn, which was allotted in full at a fixed rate of 0.30%.
During the week under review, the ECB conducted four seven-day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. These operations attracted total bids of $0.06bn, at the rates of 0.30% and 0.31%.
Domestic Treasury Bill Market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills and 273-day bills for settlement value 28 May, maturing on 27 August and 5 February 2021, respectively. Bids of €111m were submitted for the 91day bills, with the Treasury accepting €40m, while bids of €136m were submitted for the 273-day bills, with the Treasury accepting €20m. Since €15m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €45m, standing at €814m.
The yield from the 91-day bill auction was -0.254%, a decrease of 1.9 basis points from bids with a similar tenor issued on 21 May, representing a bid price of €100.0642 per €100 nominal. The yield from the 273-day bill auction was - 0.215%, an increase of 2.3 basis points from bids with a similar tenor issued on 26 March, representing a bid price of €100.1633 per €100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
On Tuesday the Treasury invited tenders for 91-day bills and 182-day bills maturing on 3 September and 3 December, respectively.