Money market report for the week ended October 8

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ECB monetary operations

On October 4, the European Central Bank announced the seven-day main refinancing operation (MRO).  The operation was conducted on October 5 and attracted bids from euro area eligible counterparties of €232 million, €85 million more than 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 October 6, the ECB conducted the seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $217 million, which was allotted in full at a fixed rate of 0.33 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day bills and 91-day bills for settlement value October 7, maturing on November 4, 2021 and January 6, 2022, respectively. Bids of €61 million were submitted for the 28-day bills, with the Treasury accepting €5 million, while bids of €82 million were submitted for the 91-day bills, with the Treasury accepting €16 million. Since €56 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €35 million, standing at €685.50 million.

The yield from the 28-day bill auction was -0.445 per cent, increasing by 4.5 basis points from bids with a similar tenor issued on January 7, representing a bid price of €100.0346 per €100 nominal. The yield from the 91-day bill auction was -0.399 per cent, decreasing by 0.4 basis point from bids with a similar tenor issued on September 30, representing a bid price of €100.1010 per €100 nominal.

During the week, 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 11, 2021 and January 13, 2022, respectively.

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