On March 20, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on March 21, and attracted bids from euro area eligible counterparties of €32.68 billion, €6.17 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 zero per cent, in accordance with current ECB policy.
On March 22, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $1.01 billion, which was allotted in full at a fixed rate of 1.41 per cent.
On March 23, the ECB conducted the fourth from the second series of Targeted Longer Term Refinancing Operations. This operation attracted bids of €233.47 billion, which was allotted in full at a fixed rate of zero per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 181-day bills for settlement value March 23, maturing on June 22 and September 20 respectively. Bids of €35 million were submitted for the 91-day bills, with the Treasury accepting €13 million, while bids of €20 million were submitted for the 181-day bills, with the Treasury accepting €2 million. Since €27 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €12 million, to stand at €227.20 million.
The yield from the 91-day bill auction was -0.350 per cent, unchanged from bids with a similar tenor issued on March 16, representing a bid price of €100.0886 per €100 nominal. The yield from the 181-day bill auction was -0.289 per cent, up by six basis points from bids with a similar tenor issued on March 16, representing a bid price of €100.1455 per €100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
Today, the Treasury will invite tenders for 274-day bills maturing on December 29.