ECB monetary operations
On July 26, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on July 27 and attracted bids from euro area eligible counterparties of €96 million, €41 million more 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 July 28, 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 €25 million from euro area eligible counterparties.
Also on July 28, the ECB conducted the seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $139.90 million, which was allotted in full at a fixed rate of 0.34 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 July 29, maturing on October 28, 2021, and January 27, 2022, respectively.
Bids of €40 million were submitted for the 91-day bills, with the Treasury accepting €35 million, while bids of €40 million were also submitted for the 182-day bills, with the Treasury accepting all bids. Since €46 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €29 million, standing at €775.25 million.
The yield from the 91-day bill auction was -0.414 per cent, increasing by 1.8 basis points from bids with a similar tenor issued on July 22, 2021, representing a bid price of €100.1048 per €100 nominal. The yield from the 182-day bill auction was -0.412 per cent, increasing by 4.0 basis points from bids with a similar tenor issued on July 15, representing a bid price of €100.2087 per €100 nominal.
During this week, there was no trading on the Malta Stock Exchange.
Today, the Treasury will invite tenders for 91-day and 364-day bills maturing on November 4, 2021, and August 4, 2022, respectively.