On Monday, June 8, the ECB announced its weekly Main Refinancing Operation. This attracted bids for €302.08 billion from euro area eligible counterparties, which amount was allotted in full at a fixed rate equivalent to the main refinancing rate of one per cent in accordance with the current ECB policy.
On the same day, the Eurosystem and the Swiss National Bank conducted a Eur/Chf foreign exchange swap, with a seven-day maturity, to provide Swiss franc liquidity against euro. This operation attracted bids for €22.56 billion, which amount was allotted in full at a fixed price of - 2.27 swap points.
The following day, the ECB conducted a Special Term Refinancing Operation with a maturity of 28-days. The ECB received bids for €56.78 billion, which amount was allotted in full at a fixed rate equivalent to the ECB's main refinancing rate of one per cent.
On the same day, the ECB announced two supplementary Longer-Term Refinancing Operations, one with a maturity of 91 days and the other with a maturity of 182 days.
These operations received bids for €14.54 billion and €18.20 billion, respectively, which amounts were allotted in full at a fixed rate equivalent to the ECB's main refinancing rate of one per cent in accordance with the current ECB policy.
Also on June 9, it being the end of the reserve deposit maintenance period, the ECB conducted an overnight liquidity-absorbing Fine Tuning Operation. This was carried out at a variable rate, with a maximum rate of one per cent. This operation received bids for €91.55 billion, with the ECB accepting €57.91 billion, or 63.26 per cent of the total amount bid for. The marginal rate on the operation was set at 0.80 per cent, the average weighted rate being 0.77 per cent.
On Wednesday, June 10, the ECB, in conjunction with the US Federal Reserve, conducted a US dollar funding operation with a tenor of seven-days. This attracted bids for $51.78 billion, which amount was allotted in full at a fixed rate of 1.21 per cent.
Domestic Treasury Bill market
In the domestic primary market for Treasury Bills, the Treasury invited tenders for 91-day bills maturing on September 11. Bids for €64.85 million were submitted, with the Treasury allotting €49.19 million. Since €29.84 million worth of bills matured during the week, the outstanding balance of Treasury Bills increased by €19.35 million to €640.84 million.
The yield resulting from the auction was 1.661 per cent, i.e. 0.3 basis points higher than that on bills with a similar tenor issued on June 5. The latest yield represented a bid price of 99.5819 per 100 nominal.
Today the Treasury will invite tenders for 91-day Bills maturing on September 18.
Treasury bill trading on the Malta Stock Exchange amounted to €0.81 million during the week, with €0.23 million trades being conducted by the Central Bank of Malta in its role as market maker and trades conducted by other brokers amounting to €0.58 million.