ECB monetary operations

On August 19, the European Central Bank (ECB) announced its weekly main refinancing operations (MRO). The operation was conducted on August 20 and attracted bids from euro area eligible counterparties of €2.97 billion, €0.02 billion lower 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 August 21, 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 $0.05 billion, which was allotted in full at a fixed rate of 2.63 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 August 22 maturing on November 21. Bids of €70 million were submitted, with the Treasury accepting €22 million. Since €20 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €2 million, at €291.80 million.

The yield from the 91-day bill auction was -0.377 per cent, a decrease of 0.3 basis point from bids with a similar tenor issued on August 14, representing a bid price of €100.0954 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 November 28.