ECB monetary operations

On August 16, the European Central Bank announced the seven-day main refinancing operation (MRO).  The operation was conducted on August 17 and attracted bids from euro area eligible counterparties of €197 million, €17 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 August 18, the ECB conducted the seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $200 million, which was allotted in full at a fixed rate of 0.34 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasurybills, the Treasury invited tenders for 91-day bills and 182-day bills for settlement value August 19, maturing on November 18, 2021, and February 17, 2022, respectively.

Bids of €47 million were submitted for the 91-day bills, with the Treasury accepting €27 million, while bids of €47 million were also submitted for the 182-day bills, with the Treasury accepting €19 million. Since €40.75 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €5.25 million, standing at €757.50 million.

The yield from the 91-day bill auction was -0.398 per cent, increasing by 0.3 basis point from bids with a similar tenor issued on August 12, representing a bid price of €100.1007 per €100 nominal.

The yield from the 182-day bill auction was -0.379 per cent, increasing by 2.3 basis points from bids with a similar tenor also issued on August 12, representing a bid price of €100.1920 per €100 nominal.

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

Today, the Treasury will invite tenders for 91-day and 182-day bills maturing on November 25, 2021 and February 24, 2022, respectively.