Money Market Report for the week ending 15 October

ECB Monetary Operations

On 11 October, the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was conducted on 12 October and attracted bids from euro area eligible counterparties of €193m, €39m 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 13 October, 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 $236m, which was 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 28-day bills and 91-day bills for settlement value 14 October, maturing on 11 November and 13 January 2022, respectively. Bids of €63m were submitted for the 28day bills, with the Treasury accepting €5m, while bids of €91m were submitted for the 91-day bills, with the Treasury accepting €21m. Since €26m worth of bills matured during the week, the outstanding balance of Treasury bills remained unchanged at €685.5m.

The yield from the 28-day bill auction was -0.445%, unchanged from bids with a similar tenor issued on 7 October, representing a bid price of €100.0346 per €100 nominal. The yield from the 91day bill auction was -0.411%, decreasing by 1.2 basis points from bids with a similar tenor also issued on 7 October, representing a bid price of €100.1040 per €100 nominal.

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

On Tuesday the Treasury invited tenders for 28and 91-day bills maturing on 18 November and 20 January 2022, respectively.