Money Market Report for the Week Ended July 1

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ECB monetary operations

On June 27, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was completed on June 28 and attracted bids from eligible Eurozone counterparties of €1,482.50 million, €794.50 million more than the previous week. The amount was fully allocated at a fixed rate equivalent to the prevailing MRO rate of zero percent, in line with current ECB policy.

On 29 June, the ECB carried out the longer-term refinancing operation with a duration of three months to be settled in the form of a tender procedure at a fixed rate with full allocation, the rate being fixed at the average MRO rate over the duration of the operation. The operation prompted bids of €400.50 million from eligible counterparties in the euro zone. Also on June 29, the ECB proceeded with the funding in US dollars over seven days

operation through secured loans in conjunction with the US Federal Reserve. This operation attracted bids of $346.50 million, which were fully allotted at the fixed rate of 1.84%.

Internal market for Treasury bills

In the national primary market for treasury bills, the Treasury launched tenders for the 91-day and 182-day bills for settlement value on June 30, maturing on September 29 and December 29, respectively. Bids of €30 million were submitted for 91-day bills, with the Treasury accepting all the bids submitted, while bids of €40 million were submitted for the 182-day bills, with the Treasury accepting 32 millions of euros. As 47 million euros of bills matured during the week, the outstanding amount of treasury bills increased by 15 million euros to 862.10 million euros.

The yield of the 91-day bill auction was 0.040%, increasing by 9.4 basis points compared to offers of similar duration issued on June 16, representing an offer price of €99.9899 for €100. of face value.

The yield on the 182-day bill auction was 0.40%, increasing by 1.0 basis points from offers of similar duration issued on June 23, representing an offer price of €99.7982 for €100 face value.

During this week, there were no transactions on the Malta Stock Exchange.

On July 5, the Treasury will launch a call for tenders for the 91-day and 182-day notes maturing on October 6, 2022 and January 5, 2023 respectively.

The report is prepared by the Office of Monetary Operations and Collateral Management of the Central Bank of Malta.

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