ECB monetary operations

On March 2, the European Central Bank announced a seven-day Main Refinancing Operation (MRO). The operation was conducted on March 3 and attracted bids from euro area eligible counterparties of €1.40 billion, €0.33 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 4, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.06 billion, which was allotted in full at a fixed rate of 1.58 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills for settlement value March 5, maturing on June 4. Bids of €55 million were submitted, with the Treasury accepting €35 million. Since €32 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €3 million, standing at €421 million.

The yield from the 91-day bill auction was -0.421 per cent, a decrease of 0.1 basis point from bids with a similar tenor issued on February 27, representing a bid price of €100.1065 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 June 11 and September 10 respectively.