ECB monetary operations

On June 14, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on June 15 and attracted bids from euro area eligible counterparties of €124 million, €61 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 16, 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 $115 million, which were allotted in full at a fixed rate of 0.33 per cent. The 84-day USD operation was also carried out at a fixed rate of 0.33 per cent and did not attract bids from euro area eligible counterparties.

On June 17, the ECB conducted the eighth operation of the TLTRO-III programme. This operation attracted bids of €109,829.31 million, with the rate fixed at the average rate of the MROs over the life of the operation. However, the final interest rate applied to this operation may differ and will be determined according to the TLTRO-III Decision.

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 June 17, maturing on September 16 and December 16, respectively. Bids of €105 million were submitted for the 91-day bills, with the Treasury accepting €35 million, while bids of €103 million were submitted for the 182-day bills, with the Treasury accepting €10 million. Since €40 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €5 million, standing at €795.75 million.

The yield from the 91-day bill auction was -0.457 per cent, decreasing by 0.2 basis point from bids with a similar tenor issued on June 10, representing a bid price of €100.1157 per €100 nominal. The yield from the 182-day bill auction was -0.463 per cent, also decreasing by 0.2 basis point from bids with a similar tenor issued on June 10, representing a bid price of €100.2346 per €100 nominal.

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

Today, the Treasury will invite tenders for 91-day bills and 364-day bills maturing on September 23, 2021 and June 23, 2022, respectively.

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