ECB monetary operations

On May 3, the European Central Bank (ECB) announced the seven-day main refinancing operations (MRO). The operation was conducted on May 4 and attracted bids from euro area eligible counterparties of €72 million, €180m 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 May 5, the ECB conducted the eight-day and 84-day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. The eight-day USD operation attracted bids of $43 million, which was allotted in full at a fixed rate of 0.32 per cent. The 84-day USD operation attracted bids of $5 million, which was 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 273-day bills for settlement value May 6, maturing on August 5, 2021, and February 3, 2022, respectively. Bids of €107 million were submitted for the 91-day bills, with the Treasury accepting €15m, while bids of €106m were submitted for the 273-day bills, with the Treasury accepting €37m. Since €40 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €12m, standing at €831.75m.

The yield from the 91-day bill auction was -0.464 per cent, a decrease of 0.7 basis point from bids with a similar tenor issued on April 29, representing a bid price of €100.1174 per €100 nominal.

The yield from the 273-day bill auction was -0.449 per cent, a decrease of 0.5 basis point from bids with a similar tenor issued on April 22, representing a bid price of €100.3417 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 12, and November 11, 2021, respectively.