ECB monetary operations
On April 26, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on April 27 and attracted bids from euro area eligible counterparties of €252 million, €126 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 April 28, 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 €25 million from euro area eligible counterparties. Also on April 28, 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 $113.50 million, which was allotted in full at a fixed rate of 0.33 per cent. The 84-day USD operation was carried out at a fixed rate of 0.34 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 April 29, maturing on July 29, 2021 and April 28, 2022, respectively. Bids of €80 million were submitted for the 91-day bills, with the Treasury accepting €40 million, while bids of €85 million were submitted for the 364-day bills, with the Treasury accepting €15 million. Since €35 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €20 million, standing at €819.75 million.
The yield from the 91-day bill auction was -0.457 per cent, an increase of 0.1 basis point from bids with a similar tenor issued on April 22, representing a bid price of €100.1157 per €100 nominal. The yield from the 364-day bill auction was -0.430 per cent, an increase of 2.3 basis points from bids with a similar tenor issued on March 25, representing a bid price of €100.4367 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 273-day bills maturing on August 5, 2021 and February 3, 2022, respectively.
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