ECB monetary operations
On August 3, the European Central Bank announced a seven-day Main Refinancing Operation (MRO). The operation was conducted on August 4 and attracted bids from euro area eligible counterparties of €0.95 billion, €0.19 billion less 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 August 5, the ECB conducted the Pandemic Emergency Longer-term Refinancing Operation (PELTRO) maturing on September 30, 2021, which attracted bids from euro area eligible counterparties of €5.68 billion. This operation was carried out through a fixed rate tender procedure with full allotment, with an interest rate that is equal to 25 basis points below the average MRO rate over the life of the PELTRO.
Also on August 5, the ECB conducted an 84-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.42 billion, which was allotted in full at a fixed rate of 0.32 per cent.
During the week under review, the ECB conducted three seven-day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. These operations attracted total bids of $0.03 billion, at the rates of 0.33 and 0.34 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills for settlement value on August 6, maturing on November 5. Bids of €115 million were submitted for the 91-day bills, with the Treasury accepting €25 million. Since €15 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €10 million, standing at €832 million.
The yield from the 91-day bill auction was -0.480 per cent, a decrease of 1.9 basis points from bids with a similar tenor issued on July 30, representing a bid price of €100.1215 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 273-day bills maturing on November 12, 2020, and May 13, 2021, respectively.