Increase in outstanding amount of Treasury bills

On Monday, December 22, the ECB conducted its weekly Main Refinancing Operation. This attracted bids for €223.69 billion from euro area eligible counterparties, at a fixed rate equivalent to the main refinancing rate of 2.50 per cent.

On the same day, the Eurosystem and the Swiss National Bank (SNB) conducted a EUR/CHF foreign exchange swap, with a seven-day maturity, to provide Swiss franc liquidity against the euro. This operation attracted bids for €11.59 billion, at a fixed price of -6.25 swap points.

The following day, the ECB, in conjunction with the US Federal Reserve, conducted a 16-day US dollar funding operation through collateralised lending. This attracted bids for $52.31 billion, at a fixed rate of 1.16 per cent. In parallel with this operation, the Eurosystem also offered 16-day dollar liquidity through a EUR/USD foreign exchange swap operation. This attracted bids for $0.54 billion at a fixed price of -4.07 swap points.

The amounts bid for in all the above-mentioned operations were allotted in full in accordance with the ECB's press releases dated October 15 and December 18.

In the domestic primary market for Treasury bills, the Treasury invited tenders for 179-day bills maturing on June 26, 2009. Bids for €39.78 million were submitted, with the Treasury accepting €20.45 million. Since no bills matured during the week, the outstanding balance of Treasury bills increased by €20.45 million to €365.80 million.

The yield resulting from the auction was 2.637 per cent, 11.3 basis points lower than that on bills with a similar tenor issued on December 19. The latest yield represented a bid price of 98.7058 per 100 nominal.

Today the Treasury will invite tenders for 179-day bills maturing on July 3 next year.

Treasury bill trading on the Malta Stock Exchange amounted to €1.75 million during the week, with all trades being conducted by the Central Bank of Malta in its role as market maker. No transactions were conducted off-Exchange.