Marginal decrease in domestic Treasury bill rate

On Monday, June 18, the European Central Bank (ECB) announced its weekly Main Refinancing Operation (MRO). This attracted bids for €228.7 billion from euro area eligible counterparties, with the ECB allotting €150.9 billion, or 65.98 per cent of the total amount bid for.

The marginal rate on the operation, that is the rate at which the total tender allotment was exhausted, was set by the ECB at 4.38 per cent, one basis point higher than the marginal rate resulting from the MRO of the previous week. In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills maturing on November 21.

Bids for €54.98 million were submitted, with the Treasury accepting only €3.2 million. Since there were no bills maturing during the week, the outstanding balance of Treasury bills rose marginally, to €423.15 million.

The yield resulting from the auction was 4.861 per cent, 3.9 basis points lower than that on bills with a similar tenor issued on August 14. The latest yield represented a bid price of 98.7862 per 100 nominal.

Today the Treasury will invite tenders for 182-day bills maturing on February 27, next year.

Treasury bill trading on the Malta Stock Exchange amounted to €3.03 million, with all trades being conducted by the Central Bank of Malta in its role as market-maker. No trading was conducted off-exchange.