ECB monetary operations
On January 25, 2021, the European Central Bank (ECB) announced the seven-day Main Refinancing Operation (MRO). The operation was conducted on January 26, 2021, and attracted bids from euro area eligible counterparties of €0.24 billion, almost unchanged from 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 January 27, 2021, 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 €0.01 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on January 27, 2021, 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 $0.07 billion, 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 0.32 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 182-day bills for settlement value January 28, 2021, maturing on April 29, and July 29, 2021, respectively.
Bids of €85 million were submitted for the 91-day bills, with the Treasury accepting €35 million, while bids of €86 million were submitted for the 182-day bills, with the Treasury accepting €6 million. Since €12 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €29 million, standing at €711 million.
The yield from the 91-day bill auction was -0.460 per cent, an increase of 1.4 basis points from bids with a similar tenor issued on January 14, 2021, representing a bid price of €100.1164 per €100 nominal.
The yield from the 182-day bill auction was −0.471 per cent, a decrease of 0.4 basis points from bids with a similar tenor issued on January 21, 2021, representing a bid price of €100.2387 per €100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
On Tuesday, the Treasury invited tenders for 182-day bills and 273-day bills maturing on August 5 and November 4, 2021, respectively.