Money market report for the week ended March 29

On March 25, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on March 26 and attracted bids from euro area eligible counterparties of €5,912 million, €3,908 million more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 4.50 per cent, in accordance with current ECB policy.

Also on March 26, the ECB conducted the threemonth, longer-term refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average MRO rate over the life of the operation. The operation attracted bids of €4,663 million from euro area eligible counterparties.

On March 27, 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 $186.60 million, which were allotted in full at a fixed rate of 5.58 per cent.

DoMEstiC trEasury Bill MarkEt

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bill for settlement value March 28, maturing on June 27. Bids of €66.52 million were submitted for the 91-day bills, with the Treasury accepting €26.27 million. Since €17.03 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €9.24 million, standing at €504.75 million.

The yield from the 91-day bill auction was 2.923 per cent, increasing by 6.10 basis points from bids with a similar tenor issued on March 21, representing a bid price of €99.2665 per €100 nominal.

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

Today, the Treasury will invite tenders for 91day bill maturing on July 4.

The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.