Money market report for the week ended March 22, 2024

ECB monetary operations

On March 18, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on March 19 and attracted bids from euro area eligible counterparties of €2,004 million, €371 million less 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.

On March 20, 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 $179.10 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 and 182-day bills for settlement value March 21, maturing on June 20 and September 19, respectively.

Bids of €61.20 million were submitted for the 91-day bills, with the Treasury accepting €20.40 million, while bids of €6.83 million were submitted for the 182-day bills, with the Treasury accepting €6.33 million. Since €74.59 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €47.86 million, standing at €495.51 million.

The yield from the 91-day bill auction was 2.862 per cent, decreasing by 7.90 basis points from bids with a similar tenor issued on March 14, representing a bid price of €99.2817 per €100 nominal. The yield from the 182-day bill auction was 2.848 per cent, decreasing by 12.0 basis points from bids with a similar tenor issued on March 7, representing a bid price of €98.5806 per €100 nominal.

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

Today, March 26, the Treasury will invite tenders for 91-day bills maturing on June 27, 2024.

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