Money market report for the week ended October 14

ECB Monetary Operations

On Monday, October 10, the European Central Bank announced its weekly main refinancing operation (MRO).

The operation was conducted on the following day, and attracted bids from euro area eligible counterparties of €32.89 billion, €1.48 billion lower than the bid amount of the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of zero per cent, in accordance with current ECB policy.

On Wednesday, October 12, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.18 billion, which was allotted in full at a fixed rate of 0.91 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day maturing on November 10. Bids of €45 million were submitted for the 28-day bills, with the Treasury accepting €4 million. Since €15 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €11 million, to stand at €250.75 million.

The yield from the 28-day bill auction was -0.391 per cent, down by 0.1 basis points from bids with a similar tenor issued on October 6, representing a bid price of 100.0304 per 100 nominal.

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

Today, the Treasury will invite tenders for 28-day and 91-day bills maturing on November 17 and January 19, 2017, respectively.


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