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Money market report for the week ended March 17

ECB monetary operations

On March 13, 2017, the European Central Bank announced its weekly main refinancing operation (MRO). The operation was conducted on March 14 and attracted bids from euro area eligible counterparties of €26.51 billion, €2.63 billion higher 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 zero per cent, in accordance with current ECB policy.

On March 15, 2017, 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 $1.02 billion, which was allotted in full at a fixed rate of 1.42 per cent.

During the week under review, participants in the first series of targeted longer-term refinancing operations had the option of terminating or reducing their outstanding amount in these operations before maturity. Accordingly, on March 29, a total of €16.74 billion will be repaid.

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 on March 16, maturing on June 15 and September 14, respectively.

Bids of €35 million were submitted for the 91-day bills, with the Treasury accepting €10 million, while bids of €10 million were submitted for the 182-day bills, with the Treasury accepting €5 million. Since €20 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €5 million, to stand at €239.20 million.

The yield from the 91-day bill auction was -0.350 per cent, unchanged from bids with a similar tenor issued on March 9, representing a bid price of €100.0886 per €100 nominal. The yield from the 182-day bill auction was -0.349 per cent, up by 0.3 basis point from bids with a similar tenor issued on March 9, representing a bid price of €100.1768 per €100 nominal.

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

Today, the Treasury will invite tenders for 91-day and 181-day bills maturing on June 22 and September 20, respectively.

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