Money Market Report for the week ending 26 November
ECB Monetary Operations
On 22 November the European Central Bank (ECB) announced the seven-day main refinancing operations (MRO). The operation was conducted on 23 November and attracted bids from euro area eligible counterparties of €157m, €15m 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 24 November, the ECB conducted the three-month, longer-term refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average MRO rate over the life of the operation. The operation attracted bids of €10m from euro area eligible counterparties.
Also on 24 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 $217.5m, 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 25 November, maturing on 23 December and 24 February2022, respectively. Bids of €51m were submitted for the 28-day bills, with the Treasury accepting €26m, while bids of €58.72m were submitted for the 91-day bills, with the Treasury accepting €18m. Since €57m worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €13m, to stand at €645m.
The yield from the 28-day bill auction was -0.424%, increasing by 0.8basis points from bids with a similar tenor issued on 18 November, representing a bid price of €100.0330 per €100 nominal. The yield from the 91-day bill auction was -0.433%, decreasing by 0.7basis point from bids with a similar tenor also issued on 18 November, representing a bid price of €100.1096 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 30 December and 3 March 2022, respectively.