Money market report for the week ending May 24

ECB monetary operations

On May 20, the European Central Bank (ECB) announced its weekly main refinancing operations (MRO). The operation was conducted on May 21, and attracted bids from euro area eligible counterparties of €4.92 billion, €0.48 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 zero per cent, in accordance with current ECB policy. 

On May 22, the ECB conducted an eight-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.02 billion, which was allotted in full at a fixed rate of 2.88 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills for settlement value May 23, maturing on August 22. Bids of €58 million were submitted, with the Treasury accepting €17 million. Since €12 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €5 million, to stand at €328.70 million.

The yield from the 91-day bill auction was -0.354 per cent, a decrease of 0.2 basis point...