ECB monetary operations

On October 18, the European Central Bank announced the seven-day main refinancing operation (MRO).  The operation was conducted on October 19 and attracted bids from euro area eligible counterparties of €63 million, €130 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 October 20, 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 $222 million, which was allotted in full at a fixed rate of 0.32 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 October 21, maturing on November 18, 2021, and January 20, 2022, respectively. Bids of €75 million were submitted for the 28-day bills, with the Treasury accepting €16 million, while bids of €94 million were submitted for the 91-day bills, with the Treasury accepting €20 million. Since €18.50 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €17.50 million, standing at €703 million.

The yield from the 28-day bill auction was -0.463 per cent, decreasing by 1.8 basis points from bids with a similar tenor issued on October 14, representing a bid price of €100.0360 per €100 nominal. The yield from the 91-day bill auction was -0.445 per cent, 3.4 basis points lower from bids with a similar tenor also issued on October 14, representing a bid price of €100.1126 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 182-day bills maturing on November 25, 2021, and April 28, 2022, respectively.