On February 20, the European Central Bank announced its weekly main refinancing operation (MRO). The operation was conducted on February 21 and attracted bids from euro area eligible counterparties of €30.83 billion, €2.82 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 February 22, 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 operation attracted bids of €2.58 billion from euro area eligible counterparties.
The amount was allotted in full in accordance with current ECB policy.
Also on February 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 $0.93 billion, which was allotted in full at a fixed rate of 1.15 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 182-day bills for settlement value February 23, maturing on March 23 and August 24, respectively. Bids of €35 million were submitted for the 28-day bills, with the Treasury accepting €2 million, while bids of €20 million were submitted for the 182-day bills, with the Treasury accepting €4 million. Since €4 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €2 million, to stand at €269.20 million.
The yield from the 28-day bill auction was -0.350 per cent, up by 4.6 basis points from bids with a similar tenor issued on January 26, representing a bid price of €100.0272 per €100 nominal.
The yield from the 182-day bill auction was -0.377 per cent, also up by 1.6 basis points from bids with a similar tenor issued on February 2, representing a bid price of €100.1910 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 and 182-day bills maturing on June 1, and August 31, respectively.