ECB monetary operations

On June 29, the European Central Bank (ECB) announced a seven-day Main Refinancing Operation (MRO). The operation was conducted on June 30 and attracted bids from euro area eligible counterparties of €1.37 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 zero per cent, in accordance with current ECB policy.

On July 1, the ECB conducted an 84-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.35 billion, which was allotted in full at a fixed rate of 0.31 per cent.

During the week under review, the ECB conducted four seven-day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. These operations attracted total bids of $0.17 billion, at the rates of 0.32 per cent and 0.33 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 182-day bills and 364-day bills for settlement value July 2, maturing on December 31 and July 1, 2021, respectively. Bids of €130.00 million were submitted for the 182-day bills, with the Treasury accepting €15 million, while bids of €130 million were also submitted for the 364-day bills, with the Treasury accepting €20 million. Since €60 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €25 million, standing at €830 million.

The yield from the 182-day bill auction was -0.435 per cent, a decrease of 8.0 basis points from bids with a similar tenor issued on June 18, representing a bid price of €100.2204 per €100 nominal. The yield from the 364-day bill auction was -0.390 per cent, a decrease of 2.6 basis points from bids with a similar tenor issued on June 25, representing a bid price of €100.3959 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 October 8 and January 7, 2021, respectively.