ECB monetary operations
On May 24, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on May 25 and attracted bids from euro area eligible counterparties of €376 million, €259 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 26, the ECB conducted the 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 MRO rate over the life of the operation. The operation attracted bids of €40 million from euro area eligible counterparties. Also on May 26, 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 $120 million, which were allotted in full at a fixed rate of 0.31 per cent. The 84-day USD operation was carried out at a fixed rate of 0.32 per cent and did not attract bids from euro area eligible counterparties.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills and 364-day bills for settlement value May 27, maturing on August 26, 2021 and May 26, 2022, respectively. Bids of €80 million were submitted for the 91-day bills, with the Treasury accepting €15 million, while bids of €90 million were submitted for the 364-day bills, with the Treasury accepting €7 million. Since €33.50 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €11.50 million, standing at €815.25 million.
The yield from the 91-day bill auction was -0.454 per cent, an increase of 0.5 basis point from bids with a similar tenor issued on May 20, representing a bid price of €100.1149 per €100 nominal. The yield from the 364-day bill auction was -0.459 per cent, decreasing by 2.9 basis points from bids with a similar tenor issued on April 29, 2021, representing a bid price of €100.4663 per €100 nominal.
During this week, there was no trading on the Malta Stock Exchange.
Today, the Treasury will invite tenders for 91-day bills and 273-day bills maturing on September 2, 2021 and March 3, 2022, respectively.