Money Market Report 30 July – 3 August

- injection auction held

Central Bank Monetary Operations
During the week under review, the Central Bank of Malta invited tenders for a 14-day Repo (injection) auction, held at a fixed rate of 4.80 per cent to mature on 17 August 2001.
The amount injected, at Lm22 million was higher as compared to the previous week’s amount of Lm5.5 million. On the same day maturing repos amounted to Lm20 million, resulting in a net injection of Lm2 million. This was due to the maturing repo amount, take up of new Treasury bills in the Primary market and also due to fact that during the week banks had to pay for their allotment of MGS.

Inter-bank Market
For the second consecutive week, no interbank-deals were transacted in the period under review.

Malta Government Treasury Bills
In the Primary market for Treasury bills, Government invited tenders for 91-day Bills. An amount of Lm9.96 million was issued as compared to Lm13.64 million maturing on the same day. As a result the outstanding balance of Treasury bills decreased to Lm 185.06 million as compared to the previous week’s level of Lm 188.74 million.
At 5.0998 per cent, the weighted average rate for the 91-day bills edged slightly upwards from the previous level of 5.0990 per cent. The latest yield corresponds to a weighted average bid price of Lm 98.7445 per Lm100 nominal.
On Tuesday 7 August, the Treasury received applications for the tender of 182-day Treasury Bills to mature on 6 February 2002. These bills will be issued on Friday 10 August against a maturing amount of Lm 7.3 million. For the following week, on Tuesday 14 August, the Treasury will receive applications for 91-day bills to be issued on Friday 17 August to mature on 16 November 2001.
Turnover in the secondary market for Treasury Bills amounted to Lm 0.83 million. All trading was conducted with the Central Bank in its role as market maker.