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13 BUSINESS & FINANCE maltatoday, WEDNESDAY, 11 DECEMBER 2013 Money Market Report for the week ending 6 December 2013 ECB decisions On Thursday, 5 December, the Governing Council of the European Central Bank (ECB) decided to keep the interest rate on the main refinancing operations (MRO) unchanged at 0.25%. Interest rates on the marginal lending facility and on the deposit facility were also left unchanged at 0.75% and 0.00%, respectively. ECB Monetary Operations On Monday, 2 December, the ECB announced its weekly MRO. The auction was conducted on Tuesday, 3 December, and attracted bids from euro area eligible counterparties of €94.63 billion, €2.58 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 0.25%, in accordance with current ECB policy. Also on Tuesday, 3 December, 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, 29 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 €190.19 billion, with the ECB allotting €184.0 billion, or 96.75%, of the total bid amount. The marginal rate on the auction was set at 0.25%, with the weighted average rate at 0.14%. On Wednesday, 4 December, 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 0.59% and did not attract bids from euro area eligible counterparties. Regular market closed – 10/12/2013 t s s s l s l l l t l t t t t t t s s s t s s l s s l t t s s l t s Symbol Code BOV CW FIM GO HSB LOM MDI MTP PZC RS2 STUM G14B G14C G15B G16A G16B G17C G19CE G20B G21A G22A G22B G28A G28B G30A G31A BV18A BV19B BV20A GF21A MB19C MD18A MI15A MI17A Volume Traded 1800 28631 44871 35770 16300 631 60000 2996 2900 10116 1036 4659 26290 7359 1738 2097 415400 2500000 5000 10000 1612 1700 15000 31000 18600 26400 1500 3700 10000 4200 50000 5000 18000 5600 Value Traded 4706.000 24926.020 42549.170 59997.250 41849.800 1173.660 16600.000 3400.460 1653.000 23060.030 2279.200 4905.460 26928.850 8014.690 1956.810 2311.940 456709.220 2593750.000 5622.000 11441.000 1849.450 1846.710 15814.500 31675.000 20486.040 28907.020 1593.750 3792.500 10350.000 4294.000 51565.000 5300.000 18450.000 5821.200 Trades 2 4 5 8 11 1 4 1 1 2 2 1 4 2 1 1 4 1 1 2 1 1 2 7 1 2 1 1 2 3 2 1 2 1 High Price 2.620 0.880 0.950 1.680 2.575 1.860 0.280 1.135 0.570 2.280 2.200 105.290 102.430 108.910 112.590 110.250 110.030 103.750 112.440 114.410 114.730 108.630 105.430 102.350 110.140 109.580 106.250 102.500 103.500 103.000 103.250 106.000 102.500 103.950 Low Price 2.600 0.870 0.945 1.640 2.560 1.860 0.270 1.135 0.570 2.279 2.200 105.290 102.430 108.910 112.590 110.250 109.930 103.750 112.440 114.410 114.730 108.630 105.430 102.000 110.140 109.450 106.250 102.500 103.500 101.000 103.010 106.000 102.500 103.950 Open Price 2.620 0.870 0.945 1.665 2.575 1.860 0.280 1.135 0.570 2.279 2.200 105.290 102.430 108.910 112.590 110.250 110.030 103.750 112.440 114.410 114.730 108.630 105.430 102.100 110.140 109.450 106.250 102.500 103.500 101.000 103.010 106.000 102.500 103.950 Close Price 2.600 0.880 0.950 1.680 2.570 1.860 0.270 1.135 0.570 2.280 2.200 105.290 102.430 108.910 112.590 110.250 109.930 103.750 112.440 114.410 114.730 108.630 105.430 102.000 110.140 109.580 106.250 102.500 103.500 103.000 103.250 106.000 102.500 103.950 Change -0.025 0.015 0.006 0.005 0.000 0.010 0.000 0.000 0.000 -0.019 0.000 -0.100 -0.220 -0.190 -0.510 -0.100 -0.050 0.200 0.070 0.080 -0.050 0.070 0.230 0.000 0.060 0.430 0.000 -0.500 -0.010 2.350 0.250 0.000 -0.500 0.950 Twap 2.614 0.871 0.948 1.677 2.567 1.860 0.277 1.135 0.570 2.280 2.200 105.290 102.430 108.910 112.590 110.250 109.940 103.750 112.440 114.410 114.730 108.630 105.430 102.180 110.140 109.500 106.250 102.500 103.500 102.240 103.130 106.000 102.500 103.950 Also on Wednesday, 4 December, the ECB, in conjunction with the US Federal Reserve, conducted an 84-day US dollar funding operation through collateralised lending. This attracted a total bid amount of $28 million, which was allotted in full at a fixed rate of 0.59%. Domestic Treasury Bill Market In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills maturing on 7 March 2014. Bids of €50.92 million were submitted, with the Treasury accepting only €27.67 million. Since €28.1 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €0.43 million, to stand at €327.92 million. The yield from the 91-day bill auction was 0.426%, i.e. 5.1 basis points lower than on bills with a similar tenor issued on 8 November 2013, representing a bid price of 99.8924 per 100 nominal. During the week under review, there was no trading on the Malta Stock Exchange. On Tuesday the Treasury invited tenders for 92-day bills and 274-day bills maturing on 14 March and 12 September 2014, respectively. YOUR FIRST CLICK OF THE DAY www.maltatoday.com.mt The rates quoted above are against the EURO.

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