ECB Monetary Operations
On March 23, the European Central Bank (ECB) announced a seven-day Main Refinancing Operation (MRO). The operation was conducted on March 24, and attracted bids from euro area eligible counterparties of €1.05 billion, €0.42 billion less 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 March 24, the ECB conducted the Additional Longer-term Refinancing Operation maturing on the June 24, which attracted bids from euro area eligible counterparties of €79.67 billion. This operation was carried out through a fixed rate tender procedure with full allotment, with an interest rate that is equal to the average deposit facility rate during the life of the operation.
On March 25, 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 €0.62 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on March 25, the ECB conducted the 84-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $27.81 billion, which was allotted in full at a fixed rate of 0.35%.
On daily basis, the ECB conducted the seven-day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. The five operations attracted bids of a total of $26.77 billion, with the rate ranging between 0.32% and 0.38%.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 273-day bills for settlement value March 26, maturing on June 25, and December 24, respectively. Bids of €20 million were submitted for the 91-day bills, with the Treasury accepting all bids, while bids of €12 million were submitted for the 273-day bills, with the Treasury also accepting all submitted bids. Since €42 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €10 million, standing at €427 million.
The yield from the 91-day bill auction was -0.395%, an increase of 2.3 basis points from bids with a similar tenor issued on March 18, representing a bid price of €100.0999 per €100 nominal. The yield from the 273-day bill auction was -0.238%, an increase of 11.2 basis points from bids with a similar tenor issued on February 20, representing a bid price of €100.1808 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 July 2, and October 1, respectively.