Money Market Report for the week ending March 3, 2017

ECB Monetary Operations

On February 27, 2017, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on February 28, 2017, and attracted bids from euro area eligible counterparties of €25.25 billion, €5.58 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 0.00%, in accordance with current ECB policy.

On March 1, 2017, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.49 billion, which was allotted in full at a fixed rate of 1.16%.

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 March 2, 2017, maturing on June 1, and August 31, 2017, respectively. Bids of €40.00 million were submitted for the 91-day bills, with the Treasury accepting €10.00 million, while bids of €30.00 million were submitted for the 182-day bills, with the Treasury accepting €5.00 million. Since €32.00 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €17.00 million, to stand at €252.20 million.

The yield from the 91-day bill auction was -0.350%, unchanged from bids with a similar tenor issued on February 16, 2017, representing a bid price of €100.0886 per €100 nominal. The yield from the 182-day bill auction was -0.379%, down by 0.2 basis point from bids with a similar tenor issued on February 23, 2017, representing a bid price of €100.1920 per €100 nominal.

During the week under review, there was no trading on the Malta Stock Exchange.

On Tuesday the Treasury invited tenders for 91-day and 182day bills maturing on June 8, and September 7, 2017, respectively.