ECB monetary operations

On November 9, the European Central Bank announced the seven-day Main Refinancing Operation (MRO). The operation was conducted on November 10 and attracted bids from euro area eligible counterparties of €0.58 billion, €0.34 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.

Also on November 10, 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 $0.06 billion, which was allotted in full at a fixed rate of 0.34 per cent. The 84-day USD operation attracted bids of $0.10 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 91-day bills for settlement value November 12, maturing on December 10, 2020 and February 11, 2021, respectively.

Bids of €93 million were submitted for the 28-day bills, with the Treasury accepting €13 million, while bids of €92 million were submitted for the 91-day bills, with the Treasury accepting €17 million. Since €45 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €15 million, standing at €656.50 million.

The yield from the 28-day bill auction was -0.487 per cent, an increase of 0.4 basis points from bids with a similar tenor issued on November 5, representing a bid price of €100.0379 per €100 nominal. The yield from the 91-day bill auction was -0.478 per cent, an increase of 1.4 basis points from bids with a similar tenor also issued on November 5, representing a bid price of €100.1210 per €100 nominal.

During the week under review, there was no trading on the Malta Stock Exchange.

Today, the Treasury will invite tenders for 28-day bills and 91-day bills maturing on December 17, 2020, and February 18, 2021, respectively.

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