ECB monetary operations
On December 14, the European Central Bank (ECB) announced the seven-day MRO. The operation was conducted on December 15 and attracted bids from euro area eligible counterparties of €0.34 billion, €0.10 billion more 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 December 16, 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 €0.48 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on December 16, the ECB conducted the 21-day and 84-day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. The 21-day USD operation attracted bids of $3.13 billion, which was allotted in full at a fixed rate of 0.33 per cent. The 84-day USD operation attracted bids of $0.51 billion, 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 and 182-day bills for settlement value December 17, 2020, maturing on March 18, and June 17, 2021, respectively. Bids of €121 million were submitted for the 91-day bills, with the Treasury accepting €25 million, while bids of €113 million were submitted for the 182-day bills, with the Treasury accepting €10 million. Since €45.50 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €10.50 million, standing at €604 million.
The yield from the 91-day bill auction was -0.496 per cent, a decrease of 0.3 basis point from bids with a similar tenor issued on December 10, 2020, representing a bid price of €100.1255 per €100 nominal. The yield from the 182-day bill auction was -0.494 per cent, a decrease of 0.5 basis point from bids with a similar tenor issued on December 3, representing a bid price of €100.2504 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 March 25, and June 24, 2021, respectively.