Money Market Report for the week ending 1 September
On August 28, 2023, the Eu-
ropean Central Bank (ECB) announced the 7-day main refinancing operation (MRO). The operation was conducted on August 29, 2023, and attracted bids from euro area eligible counterparties of €7,036.00 million, €1,145.00 million more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 4.25%, in accordance with current ECB policy.
On August 30, 2023, 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 €2,205.00 million from euro area eligible counterparties.
Also on August 30, 2023, the ECB conducted the 7-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $232.30 million, which was allotted in full at a fixed rate of 5.58%.
Domestic Treasury Bill Market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182-day bills for settlement value August 31, 2023, maturing on November 30, 2023, and February 29, 2024, respectively. Bids of €201.32 million were submitted for the 91-day bills, with the Treasury accepting €15.17 million, while bids of €11.98 million were submitted for the 182-day bills, with the Treasury accepting €2.50 million. Since €44.37 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €26.70 million, standing at €653.96 million.
The yield from the 91-day bill auction was 2.460%, decreasing by 7.70 basis points from bids with a similar tenor issued on August 24, 2023, representing a bid price of €99.3820 per €100 nominal. The yield from the 182-day bill auction was 2.249%, decreasing by 28.90 basis points from bids with a similar tenor issued on August 24, 2023, representing a bid price of €98.8758 per €100 nominal.
During this week, there was no trading on the Malta Stock Exchange.
On Tuesday the Treasury will invite tenders for 91-day bills maturing on December 7, 2023.