Money Market Report for the week ending March 4, 2022

ECB Monetary Operations

On 28 February, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on 1 March and attracted bids from euro area eligible counterparties of €163m, €273m 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 2 March, 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 $272.5m, which was allotted in full at a fixed rate of 0.35%.

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 3 March, maturing on 2 June and 1 September, respectively. Bids of €56m were submitted for the 91-day bills, with the Treasury accepting €36m, while bids of €53m were submitted for the 182-day bills, with the Treasury accepting €3m. Since €36.72m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €2.28m, to stand at €663.2m.

The yield from the 91-day bill auction was -0.387%, increasing by 0.2 basis point from bids with a similar tenor issued on 24 February, representing a bid price of €100.0979 per €100 nominal. The yield from the 182-day bill auction was - 0.391%, decreasing by 0.3 basis point from bids with a similar tenor also issued on 24 February, representing a bid price of €100.1981 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 272-day bills maturing on 9 June and 7 December, respectively.