Issue link: https://maltatoday.uberflip.com/i/210069
13 BUSINESS & FINANCE maltatoday, WEDNESDAY, 13 NOVEMBER 2013 Money Market Report for the week ending 8 November 2013 ECB decisions On Thursday, 7 November, the Governing Council of the European Central Bank (ECB) reduced the rate on its main refinancing operations (MRO) by 25 basis points to 0.25% with effect from Wednesday, 13 November 2013. Furthermore, also with effect from the same date, the ECB reduced the rate on the marginal lending facility by 25 basis points to 0.75%. The rate on the overnight deposits remained unchanged at 0.00%. On the same day, the Governing Council announced its decision to continue conducting its MROs as fixed rate tender procedures with full allotment for as long as necessary, and at least until the end of the sixth maintenance period of 2015, on 7 July 2015. This procedure will also remain in place for the specialterm refinancing operations with a maturity of one maintenance period, which will continue to be conducted for as long as necessary, and at least until the second quarter of 2015. The fixed rate in these operations will be the same as the MRO rate prevailing at the time. Furthermore, the Governing Council has decided to conduct the three-month longer-term refinancing operations (LTRO) to be allotted on 30 July, 27 August, 24 September, 29 October, 26 November and 17 December 2014, and 28 January, 25 February, 25 March, 29 April, 27 May and 24 June 2015 as fixed rate tender procedures with full allotment. The rates in these threemonth operations will be fixed at the average rate of the MROs over the life of the respective LTROs. ECB Monetary Operations On Monday, 4 November, the ECB announced its weekly MRO. The auction was conducted on Tuesday, 5 November, and attracted bids from euro area eligible counterparties of €89.52 billion, €0.20 billion higher 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. Also on Tuesday, 5 November, the ECB conducted an auction for a sevenday fixed-term deposit intended to absorb €184.0 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, 1 November. 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 €257.52 billion, with the ECB allotting €184.0 billion, or 71.45%, of the total bid amount. The marginal rate on the auction was set at 0.13%, with the weighted average rate at 0.10%. Regular market closed – 12/11/2013 Symbol Code Volume Traded Value Traded Trades High Price Low Price Open Price Close Price Change Twap t BOV 39039 103334.770 16 2.658 2.640 2.658 2.640 -0.019 2.647 s GO 40000 62500.000 6 1.570 1.560 1.560 1.560 0.010 MSI 6400 5440.000 2 0.850 0.850 0.850 0.850 0.020 RS2 49034 111839.180 9 2.300 2.280 2.280 2.280 0.000 2.281 t G16A 18700 21200.190 1 113.370 113.370 113.370 113.370 -0.090 113.370 s G16B 31177 34544.120 2 110.800 110.800 110.800 110.800 0.030 110.800 t G28A 10000 10481.000 1 104.810 104.810 104.810 104.810 -0.170 104.810 t G28B 15600 15941.220 2 102.220 101.370 102.220 101.370 -0.150 102.190 t G29A 50000 54160.000 1 108.320 108.320 108.320 108.320 -0.810 108.320 s G30A 10500 11535.350 2 109.870 109.670 109.670 109.870 0.050 109.860 l BV18A 8000 8460.000 1 105.750 105.750 105.750 105.750 0.000 105.750 l MD18A 10000 10490.000 1 104.900 104.900 104.900 104.900 0.000 104.900 t MI17A 16000 16336.000 2 102.100 102.100 102.100 102.100 -1.850 102.100 s MI17C 5700 5888.100 1 103.300 103.300 103.300 103.300 0.300 103.300 s MO19A 18400 19780.000 2 107.500 107.500 107.500 107.500 0.490 107.500 t PC20A 17500 18488.750 1 105.650 105.650 105.650 105.650 -1.350 105.650 t PS17A 69882 71629.050 1 102.500 102.500 102.500 102.500 -1.500 €3.0 million, while bids of €17.58 million were submitted for the 91-day bills, with the Treasury accepting €1.0 million. Since €28.8 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €24.8 million, to stand at €401.75 million. The yield from the 28-day bill auction was 0.510%, i.e. 2.6 basis points lower than on bills with a similar tenor issued on 1 November 2013, representing a bid price of 99.9603 per 100 nominal. The yield from the 91-day bill auction was 0.477%, i.e. 0.6 basis point lower than on bills with a similar tenor issued on 1 November 2013, representing a bid price of 99.8796 per 100 nominal. During the week under review, there was no trading on the Malta Stock Exchange. On Tuesday the Treasury invited tenders for 27-day bills maturing on 12 December 2013. YOUR FIRST CLICK OF THE DAY 0.850 l Domestic Treasury Bill Market In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day bills and 91-day bills maturing on 6 December 2013 and 7 February 2014, respectively. Bids of €24.5 million were submitted for the 28-day bills, with the Treasury accepting 1.563 s On Wednesday, 6 November, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation was carried out at a fixed rate of 0.58% and did not attract bids from euro area eligible counterparties. Also on Wednesday, 6 November, the ECB, in conjunction with the US Federal Reserve, conducted an 84-day US dollar funding operation through collateralised lending. This attracted bids of $0.13 billion, which was allotted in full at a fixed rate of 0.59%. 102.500 www.maltatoday.com.mt The rates quoted above are against the EURO.