ECB monetary operations
On November 23, the European Central Bank announced the seven-day Main Refinancing Operation (MRO). The operation was conducted on November 24 and attracted bids from euro area eligible counterparties of €0.59 billion, €0.12bn 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 November 25, 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 €0.29 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on November 25, the ECB conducted the six-day and 83-day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve.
The six-day USD operation attracted bids of $0.11 billion, which was allotted in full at a fixed rate of 0.34 per cent. The 83-day USD operation attracted bids of $0.04 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 273-day bills for settlement value November 26, maturing on December 24, 2020, and August 26, 2021, respectively. Bids of €105 million were submitted for the 28-day bills, with the Treasury accepting €20 million, while bids of €120 million were submitted for the 273-day bills, with the Treasury accepting €10 million. Since €45 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €15 million, standing at €634.50 million.
The yield from the 28-day bill auction was -0.490 per cent, a decrease of 0.4 basis point from bids with a similar tenor issued on November 19, representing a bid price of €100.0381 per €100 nominal.
The yield from the 273-day bill auction was -0.486 per cent, a decrease of 1.4 basis points from bids with a similar tenor issued on September 10, 2020, representing a bid price of €100.3699 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 and 182-day bills maturing on March 4, and June 3, 2021, respectively.