ECB monetary operations

On December 21, the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was conducted on December 22 and attracted bids from euro area eligible counterparties of €0.26 billion, €0.08 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.

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 December 24, maturing on March 25 and June 24, 2021, respectively. Bids of €111 million were submitted for the 91-day bills, with the Treasury accepting €41 million, while bids of €103 million were submitted for the 182-day bills, with the Treasury accepting €53 million. Since €49 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €45 million, standing at €649 million.

The yield from the 91-day bill auction was -0.488 per cent, an increase of 0.8 basis point from bids with a similar tenor issued on December 17, representing a bid price of €100.1235 per €100 nominal. The yield from the 182-day bill auction was -0.469 per cent, an increase of 2.5 basis points from bids with a similar tenor also issued on December 17, representing a bid price of € 100.2377 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 April 1 and September 30, 2021, respectively.