Money Market Report for the week ending 31 March

ECB Monetary Operations

On 27 March, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on 28 March and attracted bids from euro area eligible counterparties of €14.76bn, €17.93bn 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 29 March, the ECB conducted a three-month, longer-term refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average rate of the MROs over the life of the operation. The operation attracted bids of €1.31bn from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.

Also on 29 March, 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 $4.53bn, which was allotted in full at a fixed rate of 1.36%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 274-day bills for settlement value 30 March, maturing on 29 December. Bids of €30m were submitted, with the Treasury accepting €3m. Since €5m worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €2m, to stand at €225.2m.

The yield from the 274-day bill auction was -0.230%, up by 15.7 basis points from bids with a similar tenor issued on 9 February, representing a bid price of €100.1754 per €100 nominal.

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

This week the Treasury will invite tenders for 91- and 182-day bills maturing on 6 July and 5 October, respectively.