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maltatoday, WEDNESDAY, 1 OCTOBER 2014 11 Business Today Money Market Report for the week ending September 26, 2014 Exchange Rates Issue Date: 30-Sep-14 Set: 3 Issue Time: 15:06:47 Value Date: 02/10/2014 Except HKD Value 06/10/2014 Currency Cash Cash Non-Cash Non-Cash Revaluation Buying Selling Selling Buying British Pound (GBP) 0.8109 0.7536 0.7575 0.7963 0.7769 United States Dollar (USD) 1.3151 1.2222 1.2285 1.2915 1.2600 Swiss Franc (CHF) 1.2589 1.1699 1.1759 1.2363 1.2061 Australian Dollar (AUD) 1.5078 1.4013 1.4085 1.4807 1.4446 Canadian Dollar (CAD) 1.4703 1.3664 1.3735 1.4439 1.4087 Japanese Yen (JPY) 144.3600 134.1607 134.8523 141.7678 138.3100 Danish Krone (DKK) 7.7700 7.2200 7.2500 7.6300 7.4400 Swedish Kronor (SEK) 9.5400 8.8700 8.9100 9.3700 9.1400 Hong Kong Dollar (HKD) 10.2146 9.4928 9.5417 10.0311 9.7864 Norwegian Krone (NOK) 8.4600 7.8700 7.9100 8.3100 8.1100 New Zealand Dollar (NZD) 1.6908 1.5713 1.5794 1.6604 1.6199 Singapore Dollar (SGD) 1.6778 1.5593 1.5673 1.6477 1.6075 South African Rand (ZAR) 14.8806 13.8292 13.9005 14.6133 14.2569 Czech Koruna (CZK) 28.6900 26.6700 26.8028 28.1773 27.4900 Polish Zloty (PLN) 4.3600 4.0500 4.0728 4.2816 4.1772 Hungarian Forint (HUF) 341.3202 291.6813 302.5352 318.0560 310.2988 Moroccan Dirham (MAD) 12.1770 10.4058 ********* ********* 11.0700 Tunisian Dinar (TND) 2.3700 2.2100 2.2176 2.3314 2.2745 United Arab Emirates Dirham (AED) 5.0905 4.3500 4.5120 4.7434 4.6277 Bahraini Dinar (BHD) 0.5226 0.4466 ********* ********* 0.4751 Gibraltar Pound (GIP) 0.8543 0.7300 ********* ********* 0.7766 Israeli New Sheqel (ILS) 5.1176 4.3733 ********* ********* 4.6524 Kuwaiti Dinar (KWD) 0.4000 0.3418 ********* ********* 0.3636 Saudi Riyal (SAR) 5.1995 4.4432 ********* ********* 4.7268 Turkish New Lira (TRY) ********* ********* 2.8046 2.9484 2.8765 Thailand BAHT (THB) ********* ********* 39.8341 41.8769 40.8555 Chinese Renminbi (CNY Onshore) ********* ********* 7.5412 7.9280 7.7346 Chinese Renminbi (CNH Offshore) ********* ********* 7.5878 7.9770 7.7824 All Chinese Renminbi transactions, irrespective of amounts, are to be referred to Branches or Treasury. Rates shown here are indicative only and are subject to change without notice. The final exchange rate offered by the bank /applied to your transaction may vary from the rate indicated here. Our staff at the Branches or Treasury will be pleased to provide you with exchange rates for your specific transactions. The rates quoted above are against the euro. 17.21 17.26 1206.00 1206.75 GOLD D + 1 SEPA payments and payments sent to countries and in the currencies regulated by the Payments Services Directive (PSD) D + 2 All Other Currencies US Dollars per TROY ounce Value Date Currency Same Day EUR/GBP/USD/CAD SILVER PUBLIC Regular market closed –29/09/2014 Symbol Code Volume Traded Value Traded Trades High Price Low Price Open Price Close Price Change Twap s BOV 43280 96175.070 11 2.230 2.215 2.215 2.230 0.024 2.222 l GO 3230 8398.000 1 2.600 2.600 2.600 2.600 0.000 2.600 t HSB 15778 31481.110 4 2.000 1.986 2.000 1.986 -0.014 1.995 s LOM 15000 25424.230 3 1.699 1.694 1.694 1.699 0.004 1.695 s LQS 500 52.500 1 0.105 0.105 0.105 0.105 0.020 0.105 s PZC 133392 80451.170 7 0.615 0.580 0.580 0.615 0.025 0.603 l TML 330 173.250 1 0.525 0.525 0.525 0.525 0.000 0.525 t G16A 4600 5033.780 1 109.430 109.430 109.430 109.430 -0.010 109.430 l G17C 33700 37555.280 2 111.440 111.440 111.440 111.440 0.000 111.440 t G20A 10125 12300.350 2 121.490 121.480 121.480 121.490 -0.010 121.480 l G20B 2000 2359.200 1 117.960 117.960 117.960 117.960 0.000 117.960 s G21A 107176 130894.050 2 122.130 122.130 122.130 122.130 0.070 122.130 s G22B 88000 103532.000 3 117.650 117.650 117.650 117.650 0.030 117.650 s G24A 8300 9086.840 1 109.480 109.480 109.480 109.480 0.120 109.480 s G28A 29700 36388.380 3 122.540 122.420 122.420 122.540 0.120 122.520 s G28B 125000 148540.500 4 118.850 118.830 118.830 118.850 0.020 118.830 s G30A 210200 265643.180 4 126.390 126.260 126.260 126.390 0.190 126.380 s G31A 31200 38856.480 3 124.540 124.540 124.540 124.540 0.180 124.540 s G32A 237000 275333.600 6 116.180 116.050 116.050 116.180 0.170 116.170 s G32B 96900 109826.460 3 113.340 113.340 113.340 113.340 0.130 113.340 s G33A 109000 120975.000 6 111.000 110.850 110.850 111.000 0.160 110.990 s G34AA 462800 500740.200 13 108.200 108.000 108.200 108.200 0.160 108.200 s BV18A 25000 26500.000 1 106.000 106.000 106.000 106.000 0.490 106.000 l BV19B 34000 35190.000 2 103.500 103.500 103.500 103.500 0.000 103.500 s BV20A 17100 17882.480 2 104.600 104.560 104.600 104.560 0.010 104.580 t IG24A 3200 3358.120 2 105.500 104.010 105.500 104.010 -2.890 104.940 s IH21A 50000 51005.000 2 102.010 102.010 102.010 102.010 0.010 102.010 l MB19A 50000 52375.000 1 104.750 104.750 104.750 104.750 0.000 104.750 t MF24A 15500 15965.000 2 103.000 103.000 103.000 103.000 -1.500 103.000 s MI17A 35700 33801.660 2 96.000 93.990 93.990 96.000 2.010 94.680 t PC20A 3000 3180.300 1 106.010 106.010 106.010 106.010 -0.490 106.010 t PG22A 15000 15750.400 3 105.020 105.000 105.020 105.000 -1.000 105.000 l TI20A 1000 1065.600 1 106.560 106.560 106.560 106.560 0.000 106.560 ECB Monetary Operations On Monday, September 22, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The auction was conducted on Tuesday, September 23, and attracted bids from euro area eligible counterparties of €90.31 billion, €15.38 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 0.05%, in accordance with current ECB policy. On Wednesday, September 24, the ECB conducted a three-month longer-term 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 €10.97 billion from euro area eligible counterparties, which amount was allotted in full in accordance with current ECB policy. Also on Wednesday, September 24, 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. Domestic Treasury Bill Market In the domestic primary market for Treasury bills, the Treasury invited tenders for 89- day and 182-day bills maturing on December 24, 2014, and March 27, 2015, respectively. Bids of €38.00 million were submitted for the 89-day bills, with the Treasury accepting €13.00 million, while bids of €48.50 million were submitted for the 182-day bills, with the Treasury accepting €2.00 million. Since €23.50 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €8.50 million, to stand at €308.57 million. The yield from the 89-day bill auction was 0.068%, i.e. 5.1 basis points lower than on bills with a similar tenor issued on September 19, 2014, representing a bid price of 99.9832 per 100 nominal. The yield from the 182-day bill auction was 0.150%, i.e. 5.30 basis points lower than on bills with a similar tenor issued on September 12, 2014, representing a bid price of 99.9242 per 100 nominal. During the week, the Central Bank of Malta, in its role as market-maker, purchased €0.02 million worth of Treasury bills on the Malta Stock Exchange. On Tuesday the Treasury invited tenders for 28-day and 91-day bills, maturing on October 31, 2014, and January 2, 2015, respectively. Data flow this week is expected to continue to hint towards a persistent slowdown in the economic recovery in the euro zone and will thus keep the pressure on the ECB for further easing. At its meeting, analysts expect further details on how the ECB aims to expand its balance sheet signifi- cantly through asset purchases, while maintaining a dovish tone. The ECB will announce on Thursday the details of its much talked about ABS and covered purchase programmes, numbers which the market will be eager to closely scrutinise whilst inflationary numbers are expected to record low prints. Meanwhile, the EC's indices are set to slide below their long- term average, consistent with below potential growth. Less significant is the announcement of the French budget tomorrow, which is not expecting to raise any eyebrows as the macroeconomic forecasts have already been announced. On the other hand, in stark contrast, incoming US data is likely to remain upbeat and post above-expectations figures, placing pressure on the Fed to exit its QE programme. Prints such as factory indicators and auto sales are likely to have surprised on the upside whilst consumer confidence hit a seven-year high. Employment data is also expected to register an uptick whilst a number of key Fed officials are expected to make public appearances. Meanwhile, yesterday's pending home sales announcement, indicating a marginal decline, came on the back of somewhat mixed housing data during September with better- than-expected new home sales and homebuilder sentiment on one hand, and weaker-than-expected existing home sales and housing starts on the other. In Asia, the Japanese Tankan (Short- Term Economic Survey of Enterprises in Japan) survey is expected to point to some improvement, while the manufacturing PMI in China is expected to show only a small decline to 51. In the meantime, S&P Ratings Services stated overnight that it had taken numerous rating actions on hybrid securities, amounting up to 1,200 instruments, issued by European financial institutions. In effect, S&P lowered the credit ratings on 88% of reviewed hybrid capital instruments, and affirmed the credit ratings on the remaining 12% of the securities reviewed, with company officials stating that S&P plans to publish a list of instruments affected by these rating actions within the next few days. On a final note, HY spread widening has been evident over recent sessions due mainly to flow technicals. This time the source is not mutual fund outflows but rather the robustness of the new-issue calendar. The recent profit taking is emanating from overdone fears of rising rates and that yield levels this low are not sustainable. Having said this, new issue volumes are expected to slow heading into the final quarter of 2014 and credit spreads could begin widen once again as recent price action in the HY and Treasury markets has dramatically improved the trade-off between carry and (interest rate) duration risk for HY bonds. This article was issued by Calamatta Cuschieri, visit www.cc.com.mt for more information. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri & Co. Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website. Market Commentary: Data in US remains upbeat, slowdown in eurozone deepens

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