Money Market Report for the week ending 15 January

ECB Monetary Operations

On 11 January, the European Central Bank (ECB) announced the seven-day Main Refinancing Operation (MRO). The operation was conducted on 12 January and attracted bids from euro area eligible counterparties of €0.52bn, €0.34bn 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 13 January, the ECB conducted the seven-day and 84-day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. The sevenday USD operation attracted bids of $0.06bn, which was allotted in full at a fixed rate of 0.34%. The 84-day USD operation attracted bids of $0.01bn, also allotted in full at a fixed rate of 0.33%.

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 14 January, maturing on 15 April and 15 July, respectively. Bids of €93m were submitted for the 91-day bills, with the Treasury accepting €28m, while bids of €91m were submitted for the 182-day bills, with the Treasury accepting €7m. Since €15m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €20m, to stand at €669m.

The yield from the 91-day bill auction was -0.474%, an increase of 2.2 basis points from bids with a similar tenor issued on 31 December 2020, representing a bid price of €100.1200 per €100 nominal. The yield from the 182-day bill auction was -0.492%, a decrease of 2.3 basis points from bids with a similar tenor issued on 24 December 2020, representing a bid price of €100.2494 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 182-day bills and 273-day bills maturing on 22 July and 21 October, respectively.