Money market report for the week ended February 19

ECB monetary operations

On February 15, the European Central Bank announced the seven-day Main Refinancing Operation (MRO). The operation was conducted on February 16 and attracted bids from euro area eligible counterparties of €0.46 billion, €0.03 billion higher than 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 17, the ECB conducted the seven-day and 85-day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. The seven-day USD operation attracted bids of $0.14 billion, which was allotted in full at a fixed rate of 0.32 per cent. The 85-day USD operation attracted bids of $0.03 billion, which was allotted in full also at a fixed rate of 0.32 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 182-day bills and 364-day bills for settlement value February 18, maturing on August 19, 2021, and February 17, 2022, respectively. Bids of €165 million were submitted for the 182-day bills, with the Treasury accepting €22.75 million, while bids of €120 million were submitted for the 364-day bills, with the Treasury accepting €7 million. Since €30 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €0.25 million, standing at €736.75 million.

The yield from the 182-day bill auction was -0.472 per cent, a decrease of 2.2 basis points from bids with a similar tenor issued on February 11, representing a bid price of €100.2392 per €100 nominal. The yield from the 364-day bill auction was -0.466 per cent, a decrease of 7.6 basis points from bids with a similar tenor issued on July 2, 2020, representing a bid price of €100.4734 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 and 182-day bills maturing on May 27 and August 26, 2021, respectively.

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