ECB monetary operations
On June 28, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on June 29 and attracted bids from euro area eligible counterparties of €85 million, €6 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 June 30, 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 €3 million from euro area eligible counterparties. Also on June 30, 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 $162 million, which were allotted in full at a fixed rate of 0.35 per cent. The 84-day USD operation attracted bids of $5 million, which were also 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 1, maturing on September 30, and December 30, respectively. Bids of €84 million were submitted for the 91-day bills, with the Treasury accepting €25 million, while bids of €86 million were submitted for the 182-day bills, with the Treasury also accepting €25 million. Since €50 million worth of bills matured during the week, the outstanding balance of Treasury bills remained unchanged at €786.75 million.
The yield from the 91-day bill auction was -0.453 per cent, increasing by 0.3 basis point from bids with a similar tenor issued on June 24, representing a bid price of €100.1146 per €100 nominal.
The yield from the 182-day bill auction was -0.448 per cent, up by 1.5 basis points from bids with a similar tenor issued on June 17, 2021, representing a bid price of €100.2270 per €100 nominal.
During last week, there was no trading on the Malta Stock Exchange.
Today, the Treasury will invite tenders for 91-day bills and 273-day bills maturing on October 7, 2021, and April 7, 2022, respectively.