Money Market Report for the week ending 16 April

ECB Monetary Operations

On 12 April, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on 13 April and attracted bids from euro area eligible counterparties of €137m, €53m less than 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 14 April, the ECB conducted the seven-day and 84day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. The seven-day USD operation attracted bids of $43m, which was allotted in full at a fixed rate of 0.32%. The 84-day USD operation attracted bids of $5m, which was also allotted in full at a fixed rate of 0.33%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the

Treasury invited tenders for 91-day bills and 182-day bills for settlement value 15 April, maturing on 15 July and 14 October, respectively. Bids of €98m were submitted for the 91-day bills, with the Treasury accepting €43m, while bids of €90m were submitted for the 182-day bills, with the Treasury accepting €10m. Since €40m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €13m, standing at €789.75m.

The yield from the 91-day bill auction was -0.459%, a decrease of 0.2 basis point from bids with a similar tenor issued on 8 April, representing a bid price of €100.1162 per €100 nominal. The yield from the 182-day bill auction was - 0.458%, an increase of 0.8 basis point from bids with a similar tenor also issued on 8 April, representing a bid price of €100.2321 per €100 nominal.

During the week under review, turnover in Treasury bills on the Malta Stock Exchange in the regular market amounted to €24.25m.

This week the Treasury will invite tenders for 91-day bills and 273-day bills maturing on 22 July and 20 January 2022, respectively.