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maltatoday, WEDNESDAY, 11 JUNE 2014 13 Business Today Money Market Report for the week ending June 6, 2014 The rates quoted above are against the EURO. YOUR FIRST CLICK OF THE DAY www.maltatoday.com.mt Regular market closed – 10/06/2014 Symbol Code Volume Traded Value Traded Trades High Price Low Price Open Price Close Price Change Twap s BOV 59543 126404.680 22 2.150 2.120 2.130 2.130 0.010 2.123 s GO 22671 45231.000 8 2.000 1.980 1.980 2.000 0.030 1.995 s HSB 12222 25677.300 6 2.110 2.100 2.100 2.110 0.010 2.101 l LOM 2168 3143.600 2 1.450 1.450 1.450 1.450 0.000 1.450 t MDS 64200 77045.000 10 1.201 1.200 1.200 1.200 -0.040 1.200 l MIA 26500 59880.000 7 2.260 2.259 2.260 2.260 0.000 2.260 s RS2 500 1365.000 1 2.730 2.730 2.730 2.730 0.010 2.730 t SFC 500 1475.000 1 2.950 2.950 2.950 2.950 -0.030 2.950 t TML 100 51.100 1 0.511 0.511 0.511 0.511 -0.004 0.511 t G14C 9600 9628.800 1 100.300 100.300 100.300 100.300 -0.020 100.300 t G15B 28419 30354.330 1 106.810 106.810 106.810 106.810 -0.070 106.810 t G16A 35669 39410.680 2 110.490 110.490 110.490 110.490 -0.020 110.490 t G18A 76870 96986.880 1 126.170 126.170 126.170 126.170 -0.010 126.170 s G19C 10000 10685.000 1 106.850 106.850 106.850 106.850 0.070 106.850 s G20B 10000 11525.000 2 115.250 115.250 115.250 115.250 0.090 115.250 t G21A 23966 28318.230 3 118.160 118.160 118.160 118.160 -0.120 118.160 s G22A 9318 11061.400 1 118.710 118.710 118.710 118.710 0.160 118.710 s G22B 26000 29354.000 3 112.900 112.900 112.900 112.900 0.030 112.900 s G28A 7000 7842.100 2 112.030 112.030 112.030 112.030 0.470 112.030 s G28B 113000 122758.400 7 108.650 108.580 108.580 108.650 0.110 108.640 s G30A 18900 21914.550 4 115.950 115.950 115.950 115.950 0.150 115.950 s G31A 10000 11437.000 1 114.370 114.370 114.370 114.370 0.080 114.370 s G32A 8042400 8593206.880 4 106.850 106.620 106.620 106.850 0.350 106.850 s G32BA 11250000 11713500.000 3 104.120 104.120 104.120 104.120 0.310 104.120 l AX24A 85000 88241.290 7 104.000 102.520 103.500 102.520 0.000 103.810 s BV19A 4000 4220.000 1 105.500 105.500 105.500 105.500 0.500 105.500 l BV19B 10000 10257.000 1 102.570 102.570 102.570 102.570 0.000 102.570 l CF19A 6800 7038.680 1 103.510 103.510 103.510 103.510 0.000 103.510 l GC16A 61000 51850.000 5 85.000 85.000 85.000 85.000 0.000 85.000 l GF21A 100000 101600.000 2 101.600 101.600 101.600 101.600 0.000 101.600 t HB17A 3300 3402.300 1 103.100 103.100 103.100 103.100 -0.010 103.100 t IG19A 7200 7344.000 1 102.000 102.000 102.000 102.000 -1.010 102.000 s IG24A 98000 100940.000 9 103.000 103.000 103.000 103.000 3.000 103.000 ECB decisions On Thursday, June 5, the Govern- ing Council of the European Cen- tral Bank (ECB) reduced the rate on its main refinancing operations (MRO) by 10 basis points to 0.15% with effect from Wednesday, June 11, 2014. Furthermore, with effect from the same date, the ECB also reduced the rate on the marginal lending facility by 35 basis points to 0.40%, and the overnight deposit rate by 10 basis points to -0.10%. Again 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 Eurosystem's reserve maintenance period ending in December 2016. Furthermore, the Governing Council decided to conduct the three-month longer-term refinancing operations (LTRO) to be allotted before the end of the Eurosystem's reserve maintenance period ending in December 2016 as fixed rate tender procedures with full allotment. The rates in these three-month operations will be fixed at the average rate of the MROs over the life of the respective LTRO. In addition, the Governing Council decided to discontinue the Eurosystem's special-term refinancing operations with a maturity of one maintenance period following the operation to be allotted on June 10, 2014. The Governing Council also decided to suspend the weekly fine-tuning operation sterilising the liquidity injected under the Securities Markets Programme following the operation to be allotted on June 10, 2014. In pursuing its price stability mandate, the Governing Council announced measures to enhance the functioning of the monetary policy transmission mechanism by supporting lending to the real economy. In particular, the Governing Council decided: 1. to conduct a series of targeted longer-term refinancing operations (TLTROs) to improve bank lending to the euro area non- financial private sector, excluding loans to households for house purchase, over a window of two years; 2. to intensify preparatory work related to outright purchases of asset-backed securities (ABS). ECB Monetary Operations On Monday, June 2, the ECB an- nounced its weekly MRO. The auc- tion was conducted on Tuesday, June 3, and attracted bids from euro area eligible counterparties of €149.35 billion, €24.65 billion lower than the bid amount of the previous week. The amount was al- lotted in full at a fixed rate equiva- lent to the prevailing MRO rate of 0.25%, in accordance with current ECB policy. Also on Tuesday, June 3, the ECB conducted an auction for a seven- day fixed-term deposit intended to absorb €164.50 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, May 30. 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 €119.20 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 0.24%. On Wednesday, June 4, 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 once again did not attract bids from euro area eligible counterparties. Domestic Treasury Bill Market In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182-day bills maturing on September 5 and De- cember 5, 2014, respectively. Bids of €12.00 million were submitted for the 91-day bills, with the Treasury accepting €8.00 million, while bids of €43.00 million were submitted for the 182-day bills, with the Treas- ury accepting €12.00 million. Since €19.50 million worth of bills matured during the week, the outstanding bal- ance of Treasury bills increased by €0.50 million, to stand at €367.37 million. The yield from the 91-day bill auction was 0.385%, i.e. 2.40 basis points higher than on bills with a similar tenor issued on May 30, 2014, representing a bid price of 99.9028 per 100 nominal. The yield from the 182-day bill auction was 0.612%, i.e. 1.10 basis points lower than on bills with a similar tenor issued on May 23, 2014, representing a bid price of 99.6916 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 and 182-day bills maturing on September 12 and December 12, 2014, respectively.