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Money market report for the week ending August 24

ECB monetary operations

On August 20, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on August 21 and attracted bids from euro area eligible counterparties of €2.79 billion, €0.05 billion higher 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 0.00 per cent, in accordance with current ECB policy.

On August 22, 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 $0.09 billion, which was allotted in full at a fixed rate of 2.42 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 364-day bills for settlement value August 23, 2018, maturing on November 22, 2018 and August 22, 2019, respectively. Bids of €39 million were submitted for the 91-day bills, with the Treasury accepting €22 million, while bids of €22 million were submitted for the 364-day bills, with the Treasury accepting €3 million. Since €32 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €7 million, to stand at €356.6 million. The yield from the 91-day bill auction was -0.358 per cent, down by 0.2 basis points from bids with a similar tenor issued on August 16, representing a bid price of €100.0906 per €100 nominal.

The yield from the 364-day bill auction was -0.289 per cent, up by 1.1 basis points from bids with a similar tenor issued on December 14, 2017, representing a bid price of €100.2931 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 September 27 and November 29, 2018, respectively.

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