ECB monetary operations
On February 22, 2021, the European Central Bank announced the seven-day Main Refinancing Operation (MRO). The operation was conducted on February 23 and attracted bids from euro area eligible counterparties of €622 million, €163 million higher 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 February 24, 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 €30 million from euro area eligible counterparties.
Also on February 24, 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 $45 million, which was allotted in full at a fixed rate of 0.32 per cent. The 84-day USD operation attracted bids of $14 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 February 25, maturing on May 27 and August 26 respectively. Bids of €113 million were submitted for the 91-day bills, with the Treasury accepting €27.50 million, while bids of €97.50 million were submitted for the 182-day bills, with the Treasury accepting €2.50 million. Since €20 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €10 million, standing at €746.75 million.
The yield from the 91-day bill auction was -0.470 per cent, a decrease of 1.2 basis points from bids with a similar tenor issued on February 11, representing a bid price of €100.1189 per €100 nominal. The yield from the 182-day bill auction was -0.480 per cent, a decrease of 0.8 basis point from bids with a similar tenor issued on February 18, representing a bid price of €100.2433 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 June 3 and September 2 respectively.