Money market report for the week ended November 10, 2023
Information on ECB monetary operations and domestic Treasury bill market
ECB monetary operations
On November 6, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on November 7 and attracted bids from euro area eligible counterparties of €6,850 million, €1,277 million less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 4.50 per cent, in accordance with current ECB policy.
On November 8, 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 $281 million, which were allotted in full at a fixed rate of 5.58 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 91-day bills for settlement value November 9, maturing on December 7, 2023, and February 8, 2024, respectively.
Bids of €84.45 million were submitted for the 28-day bills, with the Treasury accepting €3.45 million, while bids of €106.88 million were submitted for the 91-day bills, with the Treasury accepting €27.78 million. Since €13.10 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €18.13 million, standing at €523.90 million.
The yield from the 28-day bill auction was 3.637 per cent, increasing by 36.50 basis points from bids with a similar tenor issued on November 2, representing a bid price of €99.7179 per €100 nominal.
The yield from the 91-day bill auction was 3.412 per cent, decreasing by 3.20 basis points from bids with a similar tenor issued on October 26, representing a bid price of €99.1449 per €100 nominal.
During this week, there was no trading on the Malta Stock Exchange.
Today, the Treasury will invite tenders for 28-day and 91-day bills maturing on December 14, 2023, and February 15, 2024, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.