On February 25, the European Central Bank (ECB) announced its weekly main refinancing operations (MRO). The operation was conducted on February 26 and attracted bids from euro area eligible counterparties of €6.49 billion, €0.56 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 27, 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 €1.32 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also, on February 27, 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 2.9 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 February 28, maturing on May 30. Bids of €11 million were submitted, with the Treasury accepting €9 million. Since no bills matured during the week, the outstanding balance of Treasury bills increased by €9 million, to stand at €414.30 million.
The yield from the 91-day bill auction was -0.341 per cent, up by 0.2 basis point from bids with a similar tenor issued on February 21, representing a bid price of €100.0863 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 bills maturing on June 6.