ECB monetary operations
On July 27, the European Central Bank announced a seven-day Main Refinancing Operation (MRO). The operation was conducted on July 28 and attracted bids from euro area eligible counterparties of €1.14 billion, €0.02 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.
On July 29, the ECB conducted a 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 €0.15 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on July 29, the ECB conducted an 84-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.17 billion, which was allotted in full at a fixed rate of 0.32 per cent.
During the week under review, the ECB conducted three seven-day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. These operations attracted total bids of $0.04 billion, at the rate of 0.33 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 30, maturing on October 29, 2020 and January 28, 2021, respectively.
Bids of €105 million were submitted for the 91-day bills, with the Treasury accepting €15 million, while bids of €105 million were also submitted for the 182-day bills, with the Treasury accepting €5 million. Since €17 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €3 million, standing at €822 million.
The yield from the 91-day bill auction was -0.461 per cent, a decrease of 0.7 basis point from bids with a similar tenor issued on July 23, representing a bid price of €100.1167 per €100 nominal. The yield from the 182-day bill auction was -0.459 per cent, a decrease of 0.4 basis point from bids with a similar tenor also issued on July 23, representing a bid price of €100.2326 per €100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
Today, the Treasury will invite tenders for 91-day bills maturing on November 5.