ECB Monetary Operations
On November 16, the European Central Bank (ECB) announced the seven-day Main Refinancing Operation (MRO). The operation was conducted on November 17 and attracted bids from euro area eligible counterparties of €0.47 billion, €0.11bn less 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 November 18, the ECB conducted the eight-day and 84-day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. The eight-day USD operation attracted bids of $0.05 billion, which was allotted in full at a fixed rate of 0.34 per cent. The 84-day USD operation attracted bids of $0.17 billion, also allotted in full at a fixed rate of 0.33 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day bills and 91-day bills for settlement value November 19, maturing on December 17, and February 18, 2021, respectively. Bids of €15 million were submitted for the 28-day bills, with the Treasury accepting all bids, while bids of €25 million were submitted for the 91-day bills, with the Treasury accepting €20 million. Since €42 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €7 million, standing at €649.50 million.
The yield from the 28-day bill auction was -0.486 per cent, an increase of 0.1 basis point from bids with a similar tenor issued on November 12, representing a bid price of €100.0378 per €100 nominal. The yield from the 91-day bill auction was -0.482 per cent, a decrease of 0.4 basis point from bids with a similar tenor also issued on November 12, representing a bid price of €100.1220 per €100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
Today, the Treasury will invite tenders for 28-day bills and 273-day bills maturing on December 24 and August 26, 2021, respectively.