Money market report for the week ended January 7

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ECB monetary operations

On January 3, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on January 4 and attracted bids from euro area eligible counterparties of €430 million, €44 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 January 5, 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 $313.50 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 91-day and 182-day bills for settlement value January 6, maturing on April 7, and July 7, 2022, respectively. Bids of €50.80 million were submitted for the 91-day bills, with the Treasury accepting €15.80 million, while bids of €57.70 million were submitted for the 182-day bills, with the Treasury accepting €17.70 million. 

Since €16 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €17.50 million, standing at €616.92 million.The yield from the 91-day bill auction was -0.407 per cent, decreasing by 0.1 basis point from bids with a similar tenor issued on December 30, representing a bid price of €100.1030 per €100 nominal.

The yield from the 182-day bill auction was -0.382 per cent, unchanged from bids with a similar tenor issued on December 23, 2021, representing a bid price of €100.1935 per €100 nominal. 

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

Today, the Treasury will invite tenders for 91-day and 273-day bills maturing on April 14 and October 13, 2022, respectively.

The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.

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