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Money market report for the week ending March 16

ECB monetary operations

On March 12, the European Central Bank (ECB) announced its weekly main refinancing operation. The operation was conducted on March 13 and attracted bids from euro area eligible counterparties of €1.02 billion, €0.13 billion lower 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 0.00 per cent, in accordance with current ECB policy.

On March 14, 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 $0.08 billion, which was allotted in full at a fixed rate of 1.96 per cent.

During the week under review, participants in the first, third, fifth and seventh operations 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 28, a total of €0.95 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 March 15, maturing on June 14 and September 13 respectively. Bids of €35 million were submitted for the 91-day bills, with the Treasury accepting €20 million, while €35 million were also submitted for the 182-day bills, with the Treasury accepting €5 million. Since €2.5 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €22 million, to stand at €236 million.

The yield from the 91-day bill auction was -0.361 per cent, up by 0.5 basis points from bids with a similar tenor issued on March 8, representing a bid price of €100.0913 per €100 nominal. The yield from the 182-day bill auction was -0.361 per cent, unchanged from bids with a similar tenor also issued on March 8, representing a bid price of €100.1828 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 182-day bills maturing on June 21 and September 20 respectively.

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