Money Market Report for the week ending 21 April

ECB Monetary Operations

On 13 April, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on 18 April and attracted bids from euro area eligible counterparties of €14.75bn, €1.52bn higher 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 19 April, 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 $0.08bn, which was allotted in full at a fixed rate of 1.41%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91- and 182day bills for settlement value 20 April, maturing on 20 July and 19 October, respectively. Bids of €20m were submitted for the 91day bills, with the Treasury accepting €15m, while no bids were submitted for the 182-day bills. Since €13.2m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €1.8m, to stand at €227m.

The yield from the 91-day bill auction was -0.350%, up by 0.2 basis point from bids with a similar tenor issued on 13 April, representing a bid price of €100.0886 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 27 July and 26 October, respectively.