Money Market Report for the week ending 16 July

ECB Monetary Operations

On 12 July, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on 13 July and attracted bids from euro area eligible counterparties of €42m, €30m less than 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 14 July, the ECB conducted the seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $131.80m, which was allotted in full at a fixed rate of 0.34%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the

Treasury invited tenders for 91-day bills and 182-day bills for settlement value 15 July, maturing on 14 October and 13 January 2022, respectively.

Bids of €16m and €6m were submitted for the 91-day bills and 182-day bills, respectively, with the Treasury accepting all submitted bids. Since €50m worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €28m, to stand at €778.75m.

The yield from the 91-day bill auction was -0.455%, decreasing by 0.2 basis point from bids with a similar tenor issued on 8 July, representing a bid price of €100.1151 per €100 nominal. The yield from the 182-day bill auction was - 0.452%, down by 0.4 basis point from bids with a similar tenor issued on 1 July, representing a bid price of €100.2290 per €100 nominal.

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

This week the Treasury will invite tenders for 91-day and 364-day bills maturing on 21 October and 21 July 2022, respectively.