Money Market Report for the week ending 19 November

ECB Monetary Operations

On 15 November, the European Central Bank (ECB) announced the seven-day main refinancing operations (MRO). The operation was conducted on 16 November and attracted bids from euro area eligible counterparties of €172m, €82m 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 17 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 $216.50m, 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 91-day bills for settlement value 18 November, maturing on 16 December and 17 February 2022, respectively. Bids of €55m were submitted for the 28-day bills, with the Treasury accepting €5m, while bids of €50m were submitted for the 91-day bills, with the Treasury accepting €15m. Since €50m worth of bills matured during the week, the outstanding balance of

Treasury bills decreased by €30m, to stand at €658m.

The yield from the 28-day bill auction was -0.432%, increasing by 0.7 basis points from bids with a similar tenor issued on 11 November, representing a bid price of €100.0336 per €100 nominal. The yield from the 91-day bill auction was -0.426%, 1.4 basis points higher from bids with a similar tenor also issued on 11 November, representing a bid price of €100.1078 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 23 December and 24 February 2022, respectively.