ECB monetary operations
On March 15, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on March 16 and attracted bids from euro area eligible counterparties of €0.61 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 March 17, 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 was carried out at a fixed rate of 0.33 per cent and did not attract bids from euro area eligible counterparties.
On March 18, the ECB conducted the seventh operation of the TLTRO-III programme. This operation attracted bids of €330.50 billion, with the rate fixed at the average rate of the MROs over the life of the operation. However, the final interest rate applied to this operation may differ and will be determined according to the TLTRO-III decision.
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 March 18, maturing on June 17 and September 16, respectively. Bids of €105 million were submitted for the 91-day bills, with the Treasury accepting €30 million, while bids of €95 million were submitted for the 182-day bills, with the Treasury accepting €15 million. Since €45 million worth of bills matured during the week, the outstanding balance of Treasury bills remained unchanged at €756.75 million.
The yield from the 91-day bill auction was -0.465 per cent, an increase of 0.1 basis point from bids with a similar tenor issued on March 11, representing a bid price of €100.1177 per €100 nominal. The yield from the 182-day bill auction was -0.469 per cent, an increase of 0.6 basis point from bids with a similar tenor issued on March 4, representing a bid price of €100.2377 per €100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
Today, the Treasury will invite tenders for 182-day bills and 364-day bills maturing on September 23, 2021, and March 24, 2022, respectively.