Money Market Report for the week ending 8 April

ECB Monetary Operations

On 4 April, the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was conducted on 5 April and attracted bids from euro area eligible counterparties of €408m, €35m more 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 6 April, the ECB conducted the seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal

Reserve. This operation attracted bids of $232.50m, which was allotted in full at a fixed rate of 0.60%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182-day bills for settlement value 7 April, maturing on 7 July and 6 October, respectively. Bids of €67m were submitted for the 91-day bills, with the Treasury accepting €37m, while bids of €54.50m were submitted for the 182-day bills, with the Treasury accepting €19.50m.

Since €40.80m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €15.70m, to stand at €754.70m.

The yield from the 91-day bill auction was -0.327%, increasing by 1.7 basis points from bids with a similar tenor issued on 30 March, representing a bid price of €100.0827 per €100 nominal. The yield from the 182-day bill auction was -0.326%, increasing by 2.5 basis points from bids with a similar tenor issued on 30 March, representing a bid price of €100.1651 per €100 nominal.

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

On Tuesday the Treasury invited tenders for 91-day and 182-day bills maturing on 14 July and 13 October, respectively.