ECB monetary operations

On July 12, the European Central Bank announced the seven-day main refinancing operation (MRO).  The operation was conducted on July 13 and attracted bids from euro area eligible counterparties of €42 million, €30 million less 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 July 14, 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 $131.80 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 bills and 182-day bills for settlement value July 15, maturing on October 14, 2021, and January 13, 2022, respectively.

Bids of €16 million and €6 million were submitted for the 91-day bills and 182-day bills, respectively, with the Treasury accepting all submitted bids. Since €50 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €28 million, standing at €778.75 million.

The yield from the 91-day bill auction was -0.455 per cent, decreasing by 0.2 basis point from bids with a similar tenor issued on July 8, representing a bid price of €100.1151 per €100 nominal. The yield from the 182-day bill auction was -0.452 per cent, down by 0.4 basis point from bids with a similar tenor issued on July 1, representing a bid price of €100.2290 per €100 nominal.

During this week, there was no trading on the Malta Stock Exchange.

Today week, the Treasury will invite tenders for 91-day and 364-day bills maturing on October 21, 2021, and July 21, 2022, respectively.