Money Market Report for the week ended May 28

ECB monetary operations

On May 24, the European Central Bank announced the seven-day Main Refinancing Operations (MROs). The transaction was completed on May 25 and attracted bids from eligible eurozone counterparties for € 376 million, up € 259 million from the previous week. The amount has been allocated in full at a fixed rate equivalent to the prevailing MRO rate of zero percent, in accordance with current ECB policy.

On May 26, the ECB proceeded with the longer-term three-month refinancing operation, to be settled in the form of a fixed rate tender procedure with full allocation, the rate being fixed at the rate Average MRO over the duration of the operation. The operation prompted offers of 40 million euros from eligible counterparties in the euro area. Also on May 26, the ECB conducted the seven-day and 84-day US dollar funding operations through secured loans in conjunction with the US Federal Reserve. The seven-day USD trade attracted bids of $ 120 million, which were fully awarded at a fixed rate of 0.31%. The 84-day USD trade was completed at a fixed rate of 0.32 percent and did not elicit offers from eligible euro area counterparties.

Internal market for treasury bills

In the national primary treasury bill market, the Treasury issued a tender for 91-day bills and 364-day bills for settlement value on May 27, due August 26, 2021 and May 26, 2022. , respectively. Offers of 80 million euros were submitted for 91-day bills, with the Treasury accepting 15 million euros, while offers of 90 million euros were submitted for 364-day bills, with the Treasury accepting 7 million euros. As 33.50 million euros in bills matured during the week, the outstanding amount of treasury bills decreased by 11.50 million euros to 815.25 million euros.

The auction yield for the 91-day bills was -0.454 percent, an increase of 0.5 basis points from bids with a similar grade issued on May 20, representing a bid price of 100 , € 1,149 for € 100 nominal. The 364-day bill auction yield was -0.459%, down 2.9 basis points from offers of a similar duration issued on April 29, 2021, representing a bid price of € 100.4663 for 100 € nominal.

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

Today, the Treasury will launch a call for tenders for 91-day bills and 273-day bills due September 2, 2021 and March 3, 2022, respectively.

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