ECB's weekly MRO auction results in increase in marginal rate

On Monday, April 28, the European Central Bank (ECB) announced its weekly Main Refinancing Operation (MRO). This operation attracted bids for €247.45 billion from euro area eligible counterparties, with the ECB allotting €170 billion, or 68.7 per cent of the total amount bid for. The marginal rate, which is the rate at which the total tender allotment is exhausted, was set by the ECB at 4.26 per cent, five basis points higher than the rate resulting from the previous week's MRO.

On Tuesday, April 29, the ECB announced its scheduled Longer Term Refinancing Operation (LTRO). This attracted bids for €101.2 billion from eligible counterparties, with the ECB allotting €50 billion, or 49.4 per cent of the amount bid for. The marginal rate that resulted from this auction was 4.67 per cent, up by 23 basis points from the rate resulting from the previous LTRO, that of April 3, this year.

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills maturing on August 1, this year. Out of the €42.7 million worth of bids submitted, the Treasury accepted bids for €17.5 million. Since €29 million Treasury bills matured during the week, the outstanding balance of Treasury bills decreased by €11.4 million to €340.2 million.

The yield resulting from the auction was 4.612 per cent, three basis points lower than that on bills with a similar tenor issued on April 25, this year. The latest yield represented a bid price of 98.8476 per 100 nominal.

Today the Treasury will invite tenders for 182-day bills maturing November 7, this year. The following week the Treasury will once again invite tenders for 90-day bills maturing August 14, this year.

Treasury bill trading on the Malta Stock Exchange amounted to €4.721 million, with all trades being conducted by the Bank in its role as market maker. No transactions were conducted off-exchange.