Money Market Report for the week ending 5 August

ECB Monetary Operations

On August 1, 2022, the European Central Bank (ECB) announced the 7-day main refinancing operation (MRO). The operation was conducted on August 2, 2022 and attracted bids from euro area eligible counterparties of €864.00 million, €213.00 million less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of

0.50%, in accordance with current ECB policy.

On August 3, 2022, the ECB conducted the 7-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $191.20 million, which was allotted in full at a fixed rate of 2.58%.

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 August 4, 2022, maturing on November 3, 2022 and February 2, 2023, respectively. Bids of €84.00 million were submitted for the

91-day bills, with the Treasury accepting €44.00 million, while bids of €56.50 million were submitted for the 182-day bills, with the Treasury accepting €10.50 million. Since €53.50 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €1.00 million, standing at €872.60 million.

The yield from the 91-day bill auction was 0.295%, increasing by 1.5 basis points from bids with a similar tenor issued on July 28, 2022, representing a bid price of €99.9255 per €100 nominal. The yield from the 182-day bill auction was 0.664%, decreasing by 9.2 basis points from bids with a similar tenor also issued on July 28, 2022, representing a bid price of €99.6654 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 182-day bills maturing on November 10, 2022 and February 9, 2023, respectively.