ECB monetary operations
On March 28, the European Central Bank (ECB) announced the seven-day main refinancing operations (MRO). The operation was conducted on March 29 and attracted bids from euro area eligible counterparties of €373 million, €169 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 March 30, 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 €82 million from euro area eligible counterparties. Also on March 30, 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 $365.50 million, which was allotted in full at a fixed rate of 0.59 per cent.
Domestic Treasury Bill Market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 92-day and 183-day bills for settlement value March 30, maturing on June 30 and September 29, respectively. Bids of €48.50 million were submitted for the 92-day bills, with the Treasury accepting €47 million, while bids of €47 million were submitted for the 183-day bills, with the Treasury accepting €7 million.
Since €19.70 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €34.30 million, standing at €739 million. The yield from the 92-day bill auction was -0.344 per cent, increasing by 1.3 basis points from bids with a similar tenor issued on March 17, representing a bid price of €100.0880 per €100 nominal. The yield from the 183-day bill auction was -0.351 per cent, decreasing by 2.1 basis points from bids with a similar tenor issued on March 24, representing a bid price of €100.1787 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 July 7 and October 6, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.