ECB monetary operations
On August 23, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on August 24 and attracted bids from euro area eligible counterparties of €112 million, €85m less 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 August 25, 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 €48 million from euro area eligible counterparties.
Also on August 25, the ECB conducted the seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $229 million, which was allotted in full at a fixed rate of 0.34 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 August 26, maturing on November 25, 2021, and February 24, 2022, respectively. Bids of €30 million were submitted for the 91-day bills, with the Treasury accepting €24 million, while bids of €41 million were also submitted for the 182-day bills, with the Treasury accepting €17 million. Since €27.50 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €13.50 million, standing at €771 million.
The yield from the 91-day bill auction was -0.398 per cent, unchanged from bids with a similar tenor issued on August 19, representing a bid price of €100.1007 per €100 nominal. The yield from the 182-day bill auction was -0.382 per cent, decreasing by 0.3 basis points from bids with a similar tenor also issued on August 19, representing a bid price of €100.1935 per €100 nominal.
During this week, there was no trading on the Malta Stock Exchange.
Today, the Treasury will invite tenders for 91-day and 182-day bills maturing on December 2, 2021, and March 3, 2022, respectively.