ECB monetary operations

On February 1, the European Central Bank announced the seven-day Main Refinancing Operation (MRO). The operation was conducted on February 2 and attracted bids from euro area eligible counterparties of €0.16 billion, €0.08 billion lower 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 3, 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 $0.06 billion, which was allotted in full at a fixed rate of 0.32 per cent. The 84-day USD operation attracted bids of $0.10 billion, also allotted in full 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 182-day bills and 273-day bills for settlement value February 4, maturing on August 5 and November 4, respectively. Bids of €95 million were submitted for the 182-day bills, with the Treasury accepting €20 million, while bids of €90 million were submitted for the 273-day bills, with the Treasury accepting €10 million. Since €27 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €3 million, standing at €714 million.

The yield from the 182-day bill auction was -0.461 per cent, an increase of one basis point from bids with a similar tenor issued on January 28, representing a bid price of €100.2336 per €100 nominal. The yield from the 273-day bill auction was -0.471 per cent, an increase of 0.5 basis point from bids with a similar tenor issued on January 21, representing a bid price of €100.3585 per €100 nominal.  During the week under review, there was no trading on the Malta Stock Exchange.

Yesterday, the Treasury invited tenders for 91-day bills and 182-day bills maturing on May 13 and August 12, respectively.