ECB monetary operations
On September 27, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on September 28 and attracted bids from euro area
eligible counterparties of €147 million, €103 million more 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 September 29, 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 €2 million from euro area eligible counterparties.
In addition, on September 29, the ECB conducted the Pandemic Emergency Longer-term Refinancing Operation (PELTRO) maturing on September 29, 2022, which attracted bids from euro area eligible counterparties of €1,338.70 million. This operation was carried out as 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 September 29, 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 $227.50 million, which was 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 91-day bills and 181-day bills for settlement value September 30, maturing on December 30, 2021 and March 30, 2022, respectively. Bids of €46 million were submitted for the 91-day bills, with the Treasury accepting €23.50 million, while bids of €46 million were also submitted for the 181-day bills, with the Treasury accepting €6 million. Since €51 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €21.50 million, standing at €720.50 million.
The yield from the 91-day bill auction was -0.395 per cent, decreasing by 0.1 basis point from bids with a similar tenor issued on September 23, representing a bid price of €100.0999 per €100 nominal. The yield from the 181-day bill auction was -0.371 per cent, decreasing by 0.2 basis point from bids with a similar tenor also issued on September 23, 2021, representing a bid price of €100.1869 per €100 nominal.
During this week, there was no trading on the Malta Stock Exchange.
Today, the Treasury will invite tenders for 28-day and 91-day bills maturing on November 4, 2021, and January 6, 2022, respectively.
Prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.