29 AUGUST 2001
- lower inter-bank activity
Central Bank Monetary Operations
The Central Bank of Malta accordingly held a 14-day Term Deposit to absorb the excess liquidity in the banking system. However, no bids were submitted during the auction, as banks preferred to maintain their excess in view of forthcoming commitments.
The latest available 14-day Term Deposit rate thus remained at 4.74 per cent, which had resulted from the auction session of 13 July 2001.
Malta Government Treasury Bills
The weighted average yield for the 91-day tenor resulting from this auction increased to 5.0994 per cent from the previous rate of 5.0900 per cent. This latest yield corresponds to a weighted average bid price of Lm98.7446 per Lm100 nominal.
On Tuesday 29 August, the Treasury received applications for the tender of 91-day Treasury Bills maturing on 30 November 2001. These bills issued on Friday 31 August, coincide with a same day maturing amount of Lm7.52 million. For the following week, on Tuesday 4 September, the Treasury will receive applications for 91-day bills to be issued on Friday 7 September to mature on 7 December 2001.
Trading in the secondary market for Treasury Bills amounted to Lm0.14
million, double the amount of Lm0.7 million of the previous week. All
trading was conducted with the Central Bank in its role as market maker.