Issue link: https://maltatoday.uberflip.com/i/221559
13 BUSINESS & FINANCE maltatoday, WEDNESDAY, 4 DECEMBER 2013 Money Market Report for the week ending 29 November 2013 ECB Monetary Operations On Monday, 25 November, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The auction was conducted on Tuesday, 26 November, and attracted bids from euro area eligible counterparties of €97.21 billion, €10.33 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 0.25%, in accordance with current ECB policy. On Tuesday, 26 November, the ECB conducted an auction for a seven-day 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, 22 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 0.25%. It attracted bids amounting to €157.76 billion, with the ECB allotting the full amount. The marginal rate on the auction was set at 0.25%, with the weighted average rate at 0.16%. On Wednesday, 27 November, the ECB conducted a three-month longerterm refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average rate of the MROs over the life of the operation. The auction attracted bids of €5.93 billion from euro area eligible counterparties, which amount was allotted in full in accordance with current ECB policy. Also on Wednesday, 27 November, the ECB conducted a six-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation was carried out at Regular market closed – 03/12/2013 Symbol Code Volume Traded Value Traded Trades High Price Low Price Open Price Close Price Change Twap l 6PM 20000 14000.000 2 0.700 0.700 0.700 0.700 0.000 0.700 s BOV 12884 33697.200 10 2.620 2.600 2.600 2.617 0.017 2.615 l CW 32000 27840.000 6 0.870 0.870 0.870 0.870 0.000 FIM 5470 5163.680 1 0.944 0.944 0.944 0.944 -0.001 Domestic Treasury Bill Market In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 91-day bills maturing on 27 December 2013 and 28 February 2014, respectively. Bids of €46.0 million were submitted for the 28-day bills, with the Treasury accepting only €31.0 million, while bids of €51.26 million were submitted for the 91-day bills, with the Treasury accepting none. Since www.maltatoday.com.mt 0.944 s GO 61177 101770.530 8 1.665 1.659 1.659 1.665 0.006 1.664 s HSB 10000 25495.000 2 2.550 2.549 2.549 2.550 0.010 2.550 t MDI 1004500 265215.000 4 0.270 0.264 0.270 0.264 -0.001 0.264 t MDS 13000 17420.000 2 1.340 1.340 1.340 1.340 -2.010 1.340 s MLT 760480 399252.000 1 0.525 0.525 0.525 0.525 0.004 0.525 t RS2 74859 171345.680 10 2.330 2.285 2.330 2.300 -0.040 2.289 t G16B 66469 73474.830 1 110.540 110.540 110.540 110.540 -0.360 110.540 t G17C 41000 45182.000 2 110.200 110.200 110.200 110.200 -0.090 110.200 t G21A 34150 39122.240 4 114.560 114.560 114.560 114.560 -0.160 114.560 t G22A 1000 1149.000 1 114.900 114.900 114.900 114.900 -0.370 114.900 t G28A 30000 31635.000 1 105.450 105.450 105.450 105.450 -0.140 105.450 t G28B 207000 211670.400 4 102.260 102.000 102.000 102.260 -0.140 102.260 t G31A 12000 13148.400 1 109.570 109.570 109.570 109.570 -0.120 109.570 t G32AA 79800 81923.250 6 102.750 102.500 102.700 102.500 -0.150 102.660 l AX16A 5000 5150.000 1 103.000 103.000 103.000 103.000 0.000 103.000 l BV20A 10000 10351.000 2 103.510 103.510 103.510 103.510 0.000 103.510 s IH21A 1500 1552.500 1 103.500 103.500 103.500 103.500 0.250 103.500 t MI17A 5500 5637.500 1 102.500 102.500 102.500 102.500 -0.500 €31.5 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €0.5 million, to stand at €328.35 million. The yield from the 28-day bill auction was 0.390%, i.e. 1.1 basis points lower than on bills with a similar tenor issued on 22 November 2013, representing a bid price of 99.9697 per 100 nominal. During the week under review, there was no trading on the Malta Stock Exchange. On Tuesday the Treasury invited tenders for 91-day bills maturing on 7 March 2014. YOUR FIRST CLICK OF THE DAY 0.870 t a fixed rate of 0.58% and did not attract bids from euro area eligible counterparties. 102.500 The rates quoted above are against the EURO.