ECB monetary operations
On April 1, the European Central Bank (ECB) announced the seven-day main refinancing operations (MRO). The operation was conducted on April 6 and attracted bids from euro area eligible counterparties of €190 million, €271 million less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 0.00 per cent, in accordance with current ECB policy.
On April 7, 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 $150 million, which was allotted in full at a fixed rate of 0.31 per cent. The 84-day USD operation was carried out at a fixed rate of 0.32 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 91-day bills and 182-day bills for settlement value April 8, maturing on July 8, and October 7, 2021, respectively. Bids of €85 million were submitted for the 91-day bills, with the Treasury accepting €50 million, while bids of €86 million were submitted for the 182-day bills, with the Treasury accepting €6 million. Since €48 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €8 million, standing at €776.75 million.
The yield from the 91-day bill auction was -0.457 per cent, an increase of 0.9 basis point from bids with a similar tenor issued on April 1, representing a bid price of €100.1157 per €100 nominal. The yield from the 182-day bill auction was -0.466 per cent, a decrease of 0.2 basis point from bids with a similar tenor also issued on April 1, representing a bid price of €100.2361 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 July 15, and October 14, 2021, respectively.