Money Market Report for the week ending 13 April

ECB Monetary Operations

On 9 April, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on 10 April and attracted bids from euro area eligible counterparties of €1.67bn, €0.63bn lower 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 11 April, 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 2.19%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders 28- and 91-day bills for settlement value 12 April, maturing on 10 May and 12 July, respectively. Bids of €23m were submitted for the 28-day bills, with the Treasury accepting €3m, while bids of €29m were submitted for the 91-day bills, with the Treasury accepting €12m. Since €8m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €7m, to stand at €302m.

The yield from the 28-day bill auction was -0.368%, up by 0.7 basis point from bids with a similar tenor issued on 22 February, representing a bid price of €100.0286 per €100 nominal. The yield from the 91-day bill auction was - 0.353%, down by 0.2 basis point from bids with a similar tenor issued on 5 April, representing a bid price of €100.0893 per €100 nominal.

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

This week the Treasury will invite tenders for 91- and 182-day bills maturing on 19 July and 18 October, respectively.