Money Market Report for week ending 12 November

ECB Monetary Operations

On 8 November the European Central Bank (ECB) announced the seven-day main refinancing operations (MRO). The operation was conducted on 9 November and attracted bids from euro area eligible counterparties of €254m, €186m more 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 10 November the ECB conducted a six-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $215m, 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 and 90-day bills for settlement value 11 November, maturing on 9 December and 9 February 2022, respectively. Bids of €46m were submitted for the 28-day bills, with the Treasury accepting €6m, while bids of €56m were submitted for the 90-day bills, with the Treasury accepting €14m. Since €40m worth of bills matured during the week, the outstanding balance of

Treasury bills decreased by €20m to stand at €688m.

The yield from the 28-day bill auction was -0.439%, increasing by 1.8 basis points from bids with a similar tenor issued on 4 November, representing a bid price of €100.0342 per €100 nominal. The yield from the 90-day bill auction was 0.440%, 0.5 basis point higher from bids with a similar tenor issued on 21 October, representing a bid price of €100.1101 per €100 nominal.

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

On Tuesday the Treasury will invite tenders for 28-day and 91-day bills maturing on 16 December and 17 February 2022, respectively.