Money Market Report for the week ending 30 March

ECB Monetary Operations

On 26 March, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 27 March and attracted bids from euro area eligible counterparties of €2.43bn, €0.89bn 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 March, 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 €2.36bn from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.

Also on 28 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 $5.01bn, which was allotted in full at a fixed rate of 2.15%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders 91- and 274-day bills for settlement value 29 March, maturing on 28 June and 28 December, respectively. Bids of €25m were submitted for the 91day bills, with the Treasury accepting €20m. Similarly, €25m were also submitted for the 274-day bills, with the Treasury accepting €3m. Since no bills matured during the week, the outstanding balance of Treasury bills increased by €23m, to stand at €269m.

The yield from the 91-day bill auction was -0.353%, up by 0.8 basis point from bids with a similar tenor issued on 22 March, representing a bid price of €100.0893 per €100 nominal. The yield from the 274-day bill auction was - 0.359%, increasing by 2.1 basis points from bids with a similar tenor issued on 8 February, representing a bid price of €100.2740 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 182-day bills maturing on 5 July and 4 October, respectively.