ECB monetary operations
On February 28, the European Central Bank (ECB) announced the seven-day main refinancing operations (MRO). The operation was conducted on March 1 and attracted bids from euro area
eligible counterparties of €163 million, €273 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 March 2, 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 $272.50 million, which was allotted in full at a fixed rate of 0.35 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182-day bills for settlement value March 3, maturing on June 2 and September 1, respectively.
Bids of €56 million were submitted for the 91-day bills, with the Treasury accepting €36 million, while bids of €53 million were submitted for the 182-day bills, with the Treasury accepting €3 million.
Since €36.72 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €2.28 million, standing at €663.20 million. The yield from the 91-day bill auction was -0.387 per cent, increasing by 0.2 basis point from bids with a similar tenor issued on February 24, representing a bid price of €100.0979 per €100 nominal.
The yield from the 182-day bill auction was -0.391 per cent, decreasing by 0.3 basis point from bids with a similar tenor also issued on February 24, representing a bid price of €100.1981 per €100 nominal.
During this week, there was no trading on the Malta Stock Exchange.
Today, the Treasury will invite tenders for 91-day and 272-day bills maturing on June 9 and December 7, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.