Money Market Report for the week ending 2 March

ECB Monetary Operations

On 26 February, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 27 February and attracted bids from euro area eligible counterparties of €1.72bn, €0.18bn 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 28 February, 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 €2.81bn from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.

Also on 28 February, 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 $0.06bn, which was allotted in full at a fixed rate of 1.92%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills for settlement value 1 March, maturing on 31 May. Bids of €60m were submitted, with the Treasury accepting €25m. Since €30m worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €5m, to stand at €211m.

The yield from the 91-day bill auction was -0.379%, down by 0.7 basis point from bids with a similar tenor issued on 15 February, representing a bid price of €100.0959 per €100 nominal.

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

On Tuesday the Treasury invited tenders for 90- and 182-day bills maturing on 6 June and 6 September, respectively.