Money Market Report for the Week Ended May 13

ECB monetary operations

On May 9, the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was completed on May 10 and attracted bids from eligible Eurozone counterparties of €495.40 million, €53.60 million less than the previous week. The amount was fully allocated at a fixed rate equivalent to the prevailing MRO rate of zero percent, in line with current ECB policy.

On May 11, the ECB conducted the seven-day US dollar funding operation through secured loans in conjunction with the US Federal Reserve. This transaction attracted bids of $214 million, which were fully allotted at a fixed rate of 1.08%.

Internal market for Treasury bills

In the domestic primary treasury bill market, the Treasury issued tenders for the 91-day and 182-day bills for settlement value on May 12, maturing on August 11 and November 10, respectively. Bids of €21 million and €15 million were submitted for the 91 and 182 day bills, respectively, with the Treasury accepting all bids submitted. As 40 million euros of bills matured during the week, the outstanding amount of treasury bills decreased by 4.00 million euros to 823.40 million euros.

The yield on the 91-day bill auction was -0.285%, increasing by 1.3 basis points from offers of similar duration issued on May 5, representing an offer price of €100.0721 per 100 € nominal value. The yield on the 182-day note auction was -0.261%, increasing by 1.4 basis points from offers of similar duration issued on April 28, representing an offer price of €100.1321 for €100 face value.

During this week, there were no transactions on the Malta Stock Exchange.

Today, the Treasury will launch a tender for the 91- and 182-day notes maturing on August 18 and November 17 respectively.

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

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