Money Market Report for the week ending 6 May

On 2 May, the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was conducted on 3 May and attracted bids from euro area eligible counterparties of €549m, €171.50m less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 0.00%, in accordance with current ECB policy.

On 4 May, 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 $222m, which was allotted in full at a fixed rate of 1.10%.

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 273-day bills for settlement value 5 May, maturing on 4 August and 2 February 2023, respectively. Bids of €52.50m were submitted for the 91-day bills, with the Treasury accepting €42.50m, while bids of €14.50m were submitted for the 273-day bills, with the Treasury accepting €12.50m. Since €37m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €18m, to stand at €827.40m.

The yield from the 91-day bill auction was -0.298%, decreasing by 0.4 basis point from bids with a similar tenor issued on 28 April, representing a bid price of €100.0754 per €100 nominal. The yield from the 273-day bill auction was - 0.255%, increasing by 6.4 basis points from bids with a similar tenor issued on 24 March, representing a bid price of €100.1937 per €100 nominal.

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

On Tuesday the Treasury invited tenders for 91-day and 182-day bills maturing on 11 August and 10 November, respectively.