ECB monetary operations
On February 8, 2021, the European Central Bank (ECB) announced the seven-day Main Refinancing Operation (MRO). The operation was conducted on February 9, and attracted bids from euro area eligible counterparties of €0.43 billion, €0.27bn higher than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 0.00 per cent, in accordance with current ECB policy.
On February 10, 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 $0.13 billion, which was allotted in full at a fixed rate of 0.32 per cent. The 84-day USD operation was carried out at a fixed rate of 0.32 per cent and did not attract bids from euro area eligible counterparties.
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 February 11, maturing on May 13, and August 12, 2021, respectively. Bids of €80 million were submitted for the 91-day bills, with the Treasury accepting €30m and bids of €80m were also submitted for the 182-day bills, with the Treasury accepting €10m. Since €17 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €23m, standing at €737m.
The yield from the 91-day bill auction was -0.458 per cent, an increase of 0.2 basis point from bids with a similar tenor issued on January 28, representing a bid price of €100.1159 per €100 nominal. The yield from the 182-day bill auction was -0.450 per cent, an increase of 1.1 basis points from bids with a similar tenor issued on February 4, representing a bid price of €100.2280 per €100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
Today the Treasury will invite tenders for 182-day bills and 364-day bills maturing on August 19, 2021, and February 17, 2022, respectively.