ECB monetary operations

On March 1, the European Central Bank announced the seven-day Main Refinancing Operation (MRO). The operation was conducted on March 2 and attracted bids from euro area eligible counterparties of €502 million, €120 million 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 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 $90.10 million, which was allotted in full at a fixed rate of 0.32 per cent. The 84-day USD operation attracted bids of $20 million, which was also allotted in full at a fixed rate of 0.33 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 March 4, maturing on June 3 and September 2, respectively. Bids of €108 million were submitted for the 91-day bills, with the Treasury accepting €30 million, while bids of €101 million were submitted for the 182-day bills, with the Treasury accepting €8 million. Since €41 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €3 million, standing at €743.75 million.

The yield from the 91-day bill auction was -0.468 per cent, an increase of 0.2 basis points from bids with a similar tenor issued on February 25, representing a bid price of €100.1184 per €100 nominal. The yield from the 182-day bill auction was -0.475 per cent, an increase of 0.5 basis point from bids with a similar tenor also issued on February 25, 2021, representing a bid price of €100.2407 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 maturing on June 10.