ECB monetary operations
On February 21, the European Central Bank (ECB) announced the seven-day main refinancing operations (MRO). The operation was conducted on February 22 and attracted bids from euro area eligible counterparties of €436 million, €140 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 February 23, 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 €23 million from euro area eligible counterparties.
Also on February 23, 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 $222 million, which was allotted in full at a fixed rate of 0.34 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 February 24, maturing on May 26 and August 25, respectively. Bids of €62 million were submitted for the 91-day bills, with the Treasury accepting €32 million, while bids of €56 million were submitted for the 182-day bills, with the Treasury accepting €8 million. Since €35 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €5 million, standing at €660.92 million.
The yield from the 91-day bill auction was -0.389 per cent, unchanged from bids with a similar tenor issued on February 17, representing a bid price of €100.0984 per €100 nominal.
The yield from the 182-day bill auction was -0.388 per cent, decreasing by 0.1 basis point from bids with a similar tenor also issued on February 17, representing a bid price of €100.1965 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 June 2 and September 1, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.