Money Market Report for the week ending 7 April

ECB Monetary Operation

On 3 April the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was conducted on 4 April and attracted bids from euro area eligible counterparties of €1,167m, €543m less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 3.50%, in accordance with current ECB policy.

On a daily basis, the ECB conducted the seven-day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. The four operations attracted bids of a total of $483.50m, with the rate of 5.07%.

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 6 April, maturing on 6 July and 5 October, respectively. Bids of €233.56m were submitted for the 91-day bills, with the

Treasury accepting €37.55m, while bids of €29.76m were submitted for the 182-day bills, with the Treasury accepting €14.35m. Since €50.71m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €1.20m, to stand at €786.79m.

The yield from the 91-day bill auction was 2.905%, increasing by 1.70 basis points from bids with a similar tenor issued on 30 March, representing a bid price of €99.2710 per €100 nominal. The yield from the 182-day bill auction was 2.910%, decreasing by 4.40 basis points from bids with a similar tenor also issued on 30 March, representing a bid price of €98.5502 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 13 July and 12 October, respectively.