ECB monetary operations
On December 28, the European Central Bank (ECB) announced the seven-day Main Refinancing Operation (MRO). The operation was conducted on December 29 and attracted bids from euro area eligible counterparties of €0.47 billion, €0.21 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.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 273-day bills for settlement value December 31, maturing on April 1 and September 30, 2021, respectively. Bids of €105 million were submitted for the 91-day bills, with the Treasury accepting €19 million, while bids of €100 million were submitted for the 273-day bills, with the Treasury accepting €6 million. Since €30 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €5 million, standing at €644 million.
The yield from the 91-day bill auction was -0.496 per cent, a decrease of 0.8 basis point from bids with a similar tenor issued on December 24, representing a bid price of €100.1255 per €100 nominal. The yield from the 273-day bill auction was -0.495 per cent, a decrease of 0.2 basis point from bids with a similar tenor issued on December 10, representing a bid price of € 100.3768 per €100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
Today, the Treasury will invite tenders for 28-day bills and 273-day bills maturing on February 4 and October 7, 2021, respectively.