On February 26, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on February 27 and attracted bids from euro area eligible counterparties of €1.72 billion, €0.18 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 0.00 per cent, in accordance with current ECB policy.

On February 28, 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 €2.81 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.

Also on February 28, 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 $0.06 billion, which was allotted in full at a fixed rate of 1.92 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills for settlement value March 1, maturing on May 31. Bids of €60 million were submitted, with the Treasury accepting €25 million. Since €30 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €5 million, to stand at €211 million.

The yield from the 91-day bill auction was -0.379 per cent, down by 0.7 basis point from bids with a similar tenor issued on February 15, representing a bid price of €100.0959 per €100 nominal.

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

Today the Treasury will invite tenders for 90-day and 182-day bills maturing on June 6 and September 6, respectively.