On Monday, February 23, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The auction was conducted the following day and attracted bids from euro area eligible counterparties of €165.35 billion, €43.24 billion higher 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 0.05 per cent, in accordance with current ECB policy.
On Wednesday, February 25, the ECB conducted a 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 rate of the MROs over the life of the operation. The auction attracted bids of €54.04 billion from euro area eligible counterparties, which amount was allotted in full in accordance with current ECB policy. Also on Wednesday, February 25, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation was carried out at a fixed rate of 0.59 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 and 182-day bills maturing on May 29 and August 28, respectively. Bids of €25 million were submitted for the 91-day bills, with the Treasury accepting €0.50 million, while bids of €27 million were submitted for the 182-day bills, with the Treasury accepting €6 million. Since €6 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €0.50 million, to stand at €210.44 million.
The yield from the 91-day bill auction was 0.020 per cent, i.e. 0.2 basis point lower than on bills with a similar tenor issued on February 13, representing a bid price of 99.9949 per 100 nominal.
The yield from the 182-day bill auction was 0.030 per cent, i.e. also 0.2 basis point lower than on bills with a similar tenor issued on February 20, representing a bid price of 99.9848 per 100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
Today, the Treasury will invite tenders for 182-day bills maturing on September 4.