Money Market Report for the week ending 26 April

ECB Monetary Operations

On 22 April the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was conducted on 23 April and attracted bids from euro area eligible counterparties of €4,455m, €2,878m more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 4.50%, in accordance with current ECB policy.

On 24 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 $123.60m, which were allotted in full at a fixed rate of 5.58%.

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 25 April, maturing on 25 July and 24

October, respectively. Bids of €67.48m were submitted for the 91-day bills, with the Treasury accepting €37.48m, while bids of €8.01m were submitted for the 182-day bills, with the Treasury accepting all bids. Since €41.60m worth of bills matured during the week, the outstanding balance of Treasury bills increased by €3.88m, to stand at €482.68m.

The yield from the 91-day bill auction was 3.415%, increasing by 25.10 basis points from bids with a similar tenor issued on 18 April, representing a bid price of €99.1442 per €100 nominal. The yield from the 182-day bill auction was 3.123%, increasing by 1.20 basis points from bids with a similar tenor also issued on 18 April, representing a bid price of €98.4457 per €100 nominal.

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

On Monday the Treasury invited tenders for 91and 182-day bills maturing on 1 August and 31 October, respectively.