Money Market Report for the week ending 5 November

ECB Monetary Operations

On 1 November, the European Central Bank (ECB) announced the seven-day main refinancing operations (MRO). The operation was conducted on 2 November and attracted bids from euro area eligible counterparties of €68m, €35m 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 the current ECB policy.

On 3 November, the ECB conducted an eight-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $228m, which was allotted in full at a fixed rate of 0.32%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day bills and 273-day bills for settlement value 4 November, maturing on 2 December and 4 August 2022, respectively. Both the 28-day and the 273-day bills received bids of €3m each, with the Treasury accepting all submitted bids. Since €27m worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €21m, to stand at €708m.

The yield from the 28-day bill auction was -0.457%, decreasing by 1.7 basis points from bids with a similar tenor issued on 28 October, representing a bid price of €100.0356 per €100 nominal. The yield from the 273-day bill auction was -0.399%, 2.8basis points lower from bids with a similar tenor issued on16 September, representing a bid price of €100.3035per €100 nominal.

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

On Tuesday the Treasury invited tenders for 28-day and 90-day bills maturing on 9 December and 9 February2022, respectively.