ECB monetary operations
On November 2, the European Central Bank announced the seven-day Main Refinancing Operation (MRO). The operation was conducted on November 3 and attracted bids from euro area eligible counterparties of €0.93 billion, €0.11 billion 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 4, the ECB conducted the Pandemic Emergency Longer-term Refinancing Operation (PELTRO) maturing on July 29, 2021, which attracted bids from euro area eligible counterparties of €0.75 billion. This operation was carried out through a fixed rate tender procedure with full allotment, with an interest rate that is equal to 25 basis points below the average MRO rate over the life of the PELTRO.
Also on November 4, 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 $0.20 billion, which was allotted in full at a fixed rate of 0.34 per cent. The 84-day USD operation was carried out at a fixed rate of 0.33 per cent and did not attract bids from euro area eligible counterparties.
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 5, maturing on December 3, 2020 and February 4, 2021, respectively. Bids of €96 million were submitted for the 28-day bills, with the Treasury accepting €13 million, while bids of €100 million were submitted for the 91-day bills, with the Treasury accepting €12 million. Since €40 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €15 million, standing at €671.50 million.
The yield from the 28-day bill auction was -0.491 per cent, a decrease of 0.3 basis points from bids with a similar tenor issued on October 29, representing a bid price of €100.0382 per €100 nominal. The yield from the 91-day bill auction was -0.492 per cent, a decrease of 0.3 basis points from bids with a similar tenor also issued on October 29, representing a bid price of €100.1245 per €100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
Today, the Treasury invited tenders for 28-day bills and 91-day bills maturing on December 10, 2020 and February 11, 2021, respectively.