ECB monetary operations

On May 10, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on May 11 and attracted bids from euro area eligible counterparties of €111 million, €39 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 May 12, the ECB conducted the six-day and 83-day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. The six-day USD operation attracted bids of $78 million, which were allotted in full at a fixed rate of 0.31 per cent. The 83-day USD operation attracted bids of $50 million, which were 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 May 13, maturing on August 12, and November 11, respectively.

Bids of €80 million were submitted for the 91-day bills, with the Treasury accepting €30 million, while bids of €80 million were also submitted for the 182-day bills, with the Treasury accepting €20 million. Since €40 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €10 million, standing at €841.75 million.

The yield from the 91-day bill auction was -0.458 per cent, an increase of 0.6 basis point from bids with a similar tenor issued on May 6, representing a bid price of €100.1159 per €100 nominal.

The yield from the 182-day bill auction was -0.449 per cent, an increase of 0.9 basis point from bids with a similar tenor issued on April 15, 2021, representing a bid price of €100.2275 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 August 19 and November 18, respectively.