Money market report for the week ended May 13

ECB monetary operations

On May 9, the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was conducted on May 10 and attracted bids from euro area eligible counterparties of €495.40 million, €53.60 million less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of zero per cent, in accordance with current ECB policy.

On May 11, the ECB conducted the seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $214 million, which was allotted in full at a fixed rate of 1.08 per cent.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182-day bills for settlement value May 12, maturing on August 11 and November 10, respectively. Bids of €21 million and €15 million were submitted for the 91-day and 182-day bills, respectively, with the Treasury accepting all submitted bids. Since €40 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €4.00 million, standing at €823.40...