ECB monetary operations
On March 29, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on March 30 and attracted bids from euro area eligible counterparties of €461 million, €190 million more than 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 31, the ECB conducted the three-month, 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 €93 million from euro area eligible counterparties.
Also on March 31, the ECB conducted the seven-day and 84-day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. The seven-day USD operation attracted bids of $213 million, which was allotted in full at a fixed rate of 0.32 per cent. The 84-day USD operation attracted bids of $5 million, which was allotted in full also at a fixed rate of 0.32 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills and 182-day bills for settlement value April 1, maturing on July 1 and September 30, respectively. Bids of €105 million were submitted for the 91-day bills, with the Treasury accepting €30 million, while bids of €95 million were submitted for the 182-day bills, with the Treasury accepting €20 million. Since €34 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €16 million, standing at €768.75 million.
The yield from the 91-day bill auction was -0.466 per cent, a decrease of 0.1 basis point from bids with a similar tenor issued on March 18, representing a bid price of €100.1179 per €100 nominal. The yield from the 182-day bill auction was -0.464 per cent, an increase of 0.2 basis point from bids with a similar tenor issued on March 25, representing a bid price of €100.2351 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 bills and 182-day bills maturing on July 8, and October 7, respectively.