Issue link: https://maltatoday.uberflip.com/i/193056
13 BUSINESS & FINANCE maltatoday, WEDNESDAY, 16 OCTOBER 2013 Money Market Report for the week ending 11 October 2013 ECB Monetary Operations On Monday, 7 October, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The auction was conducted on Tuesday, 8 October, and attracted bids from euro area eligible counterparties of €93.37 billion, €1.1 billion lower than the bid amount of 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 Tuesday, 8 October, the ECB conducted a special-term refinancing operation with a maturity of 35 days. This attracted bids of €3.45 billion, which was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 0.50%, also in accordance with the current ECB policy. Also on Tuesday, 8 October, the ECB conducted an auction for a seven-day fixed-term deposit intended to absorb €188.0 billion. This operation was designed to sterilise the effect of purchases made under the Securities Markets Programme that were settled but had not yet matured by the previous Friday, 4 October. The auction was carried out at a variable rate, with euro area eligible counterparties allowed to place up to four bids at a maximum rate of 0.50%. It attracted bids amounting to €251.35 billion, with the ECB allotting €188.0 billion, or 74.80%, of the total bid amount. The marginal rate on the auction was set at 0.09%, with the weighted average rate at 0.08%. On Wednesday, 9 October, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This Regular market closed – 15/10/2013 Symbol Code t Volume Traded Value Traded Trades High Price Low Price Open Price Close Price Change Twap BOV 15129 2.479 2.479 2.460 -0.016 2.476 37452.340 8 2.460 s CW 7000 5575.000 3 0.800 0.790 0.790 0.800 0.015 0.796 t GO 4403 6424.470 3 1.490 1.450 1.490 1.490 -0.005 1.459 t IHI 1800 1500.600 3 0.840 0.830 0.840 0.830 -0.010 MIA 16393 32786.000 3 2.000 2.000 2.000 2.000 0.000 2.000 l MTP 1533 1609.650 1 1.050 1.050 1.050 1.050 0.000 Domestic Treasury Bill Market In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day bills and 182-day bills maturing on 8 November 2013 and 11 April 2014, respectively. Bids of €25.0 million were submitted for the 28-day bills, with the Treasury accepting €8.0 million, while bids of €39.0 million were submitted for the 182-day bills, with the Treasury 0.834 l operation was carried out at a fixed rate of 0.62% and did not attract bids from euro area eligible counterparties. Also on Wednesday, 9 October, the ECB, in conjunction with the US Federal Reserve, conducted an 85-day US dollar funding operation through collateralised lending. This attracted bids of $0.11 billion, which was allotted in full at a fixed rate of 0.61%. 1.050 t RS2 5000 9900.000 2 1.980 1.980 1.980 1.980 -0.010 1.980 l G14C 2330 2403.160 1 103.140 103.140 103.140 103.140 0.000 103.140 t G15A 6057 6574.870 1 108.550 108.550 108.550 108.550 -0.070 108.550 t G15F 5000000 5300500.000 1 106.010 106.010 106.010 106.010 -0.170 106.010 l G16A 5000000 5680000.000 1 113.600 113.600 113.600 113.600 0.000 113.600 s G16B 4000000 4437200.000 1 110.930 110.930 110.930 110.930 0.040 110.930 t G17C 10000 11011.000 1 110.110 110.110 110.110 110.110 -0.080 110.110 t G17D 6200000 6704060.000 1 108.130 108.130 108.130 108.130 -0.270 108.130 t G18A 3000000 3781800.000 1 126.060 126.060 126.060 126.060 -0.160 126.060 t G21A 26800 30552.000 2 114.000 114.000 114.000 114.000 -0.170 114.000 t G22B 150000 161880.000 3 107.920 107.920 107.920 107.920 -0.180 107.920 s G28BC 62000 63407.200 2 102.360 101.800 101.800 102.360 0.040 102.270 t G31A 5000 5420.500 1 108.410 108.410 108.410 108.410 -0.210 108.410 s BV19A 1400 1484.140 1 106.010 106.010 106.010 106.010 0.010 106.010 s BV20A 2400 2496.000 1 104.000 104.000 104.000 104.000 0.790 104.000 s IH20A 16000 16640.000 1 104.000 104.000 104.000 104.000 0.200 104.000 s MS23A 4900 4998.490 5 102.010 102.010 102.010 102.010 2.010 102.010 The rates quoted above are against the EURO. accepting €2.0 million. Since €9.0 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €1.0 million, to stand at €415.75 million. The yield from the 28-day bill auction was 0.449%, i.e. 1.6 basis points lower than on bills with a similar tenor issued on 4 October 2013, representing a bid price of 99.9651 per 100 nominal. The yield from the 182-day bill auction was 0.570%, i.e. 3.8 basis points lower than on bills with a similar tenor issued on 4 October 2013, representing a bid price of 99.7127 per 100 nominal. During the week under review, there was no trading on the Malta Stock Exchange. On Tuesday the Treasury invited tenders for 28-day bills and 91-day bills maturing on 15 November 2013 and 17 January 2014, respectively.