Money Market Report for the week ending 23 March

ECB Monetary Operations

On 19 March, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 20 March and attracted bids from euro area eligible counterparties of €1.54bn, €0.52bn 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 21 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 $0.08bn, which was allotted in full at a fixed rate of 2.21%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders 91- and 182-day bills for settlement value 22 March, maturing on 21 June and 20 September, respectively. Bids of €30m were submitted for the 91-day bills, with the Treasury accepting €12m, while €35m were submitted for the 182day bills, with the Treasury accepting €5m. Since €7m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €10m, to stand at €246m.

The yield from the 91-day bill auction was -0.361%, unchanged from bids with a similar tenor issued on 15 March, representing a bid price of €100.0913 per €100 nominal. Similarly, yield from the 182-day bill auction was -0.361%, unchanged from bids with a similar tenor also issued on 15 March, representing a bid price of €100.1828 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- and 274-day bills maturing on 28 June and 28 December, respectively.