ECB monetary operations
On February 24, the European Central Bank announced a seven-day Main Refinancing Operation (MRO). The operation was conducted on February 25 and attracted bids from euro area eligible counterparties of €1.72 billion, €0.70 billion more 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 0%, in accordance with current ECB policy.
On February 26, the ECB conducted a 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 rate of the MROs over the life of the operation. The operation attracted bids of €0.81 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also, on February 26, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.05 billion, which was allotted in full at a fixed rate of 2.08%.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills for settlement value February 27, maturing on May 28. Bids of €20 million were submitted, with the Treasury accepting €15 million. Since €15 million worth of bills matured during the week, the outstanding balance of Treasury bills remained unchanged, standing at €418 million.
The yield from the 91-day bill auction was -0.420%, an increase of 0.2 basis point from bids with a similar tenor issued on February 20, representing a bid price of €100.1063 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 maturing on June 4.