Money market report for the week ended November 15, 2024
Information on ECB monetary operations and the domestic Treasury bill market
ECB monetary operations
On November 11, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on November 12 and attracted bids from euro area eligible counterparties of €9,188 million, €698 million less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 3.40%, in accordance with current ECB policy.
On November 13, 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 $125 million, which were allotted in full at a fixed rate of 4.83%.
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 November 14, maturing on February 13 and May 15, 2025, respectively.
Bids of €101.68 million were submitted for the 91-day bills, with the Treasury accepting €48.01 million, while bids of €22.30 million were submitted for the 182-day bills, with the Treasury accepting €17.30 million. Since €19.91 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €45.41 million, standing at €473.18 million.
The yield from the 91-day bill auction was 3.130%, increasing by 0.10 basis point from bids with a similar tenor issued on November 7, representing a bid price of €99.2150 per €100 nominal. The yield from the 182-day bill auction was 2.765%, increasing by 19.0 basis points from bids with a similar tenor also issued on November 7, representing a bid price of €98.6214 per €100 nominal.
During the week, secondary market turnover in Malta Government Treasury bills amounted to €115,000, all executed on the on-exchange market of the Malta Stock Exchange.
Today, the Treasury will invite tenders for 91-day and 364-day bills maturing on February 20 and November 20, 2025, respectively.
This article is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.