Money market report for the week ended August 6

ECB monetary operations 

On August 2, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on August 3 and attracted bids from euro area eligible counterparties of €145 million, €49 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 August 4, 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 $194 million, which was allotted in full at a fixed rate of 0.34 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills and 364-day bills for settlement value August 5, maturing on November 4, 2021 and August 4, 2022, respectively.

Bids of €12 million and €8 million were submitted for the 91-day bills and 364-day bills, respectively, with the Treasury accepting all submitted bids. Since €35 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €15 million, standing at €760.25 million.

The yield from the 91-day bill auction was -0.407 per cent, increasing by 0.7 basis point from bids with a similar tenor issued on July 29, representing a bid price of €100.1030 per €100 nominal. The yield from the 364-day bill auction was -0.408 per cent, increasing by 1.3 basis points from bids with a similar tenor issued on July 22, 2021, representing a bid price of €100.4142 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 181-day bills maturing on November 11, 2021 and February 9, 2022, respectively.