Amount of Treasury Bills outstanding in domestic market increases
On Monday, June 15, the European Central Bank announced its weekly Main Refinancing Operation. This attracted bids for €309.62 billion from euro area eligible counterparties, which amount was allotted in full at a fixed rate equivalent to the main...
On Monday, June 15, the European Central Bank announced its weekly Main Refinancing Operation. This attracted bids for €309.62 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 the euro. This operation attracted bids for €21.99 billion, which amount was allotted in full at a fixed price of -2.4 swap points.
On Tuesday, June 16, the Eurosystem, in conjunction with the US Federal Reserve, conducted an 84-day US dollar funding operation through collateralised lending. This attracted bids for $0.42 billion, which amount was allotted in full at a fixed rate of 1.23 per cent.
On Wednesday, June 17, the ECB, in conjunction with the US Federal Reserve, conducted another US dollar funding operation, this time with a tenor of seven days. This attracted bids for $40.62 billion, which amount was allotted in full at a fixed rate of 1.21 per cent.
In the domestic primary market for Treasury Bills, the Treasury invited tenders for 91-day Bills maturing on September 18. Bids for €51.73 million were submitted, with the Treasury allotting €39.43 million. Since €37.20 million worth of bills matured during the week, the outstanding balance of Treasury Bills increased by €2.23 million to €643.07 million.
The yield resulting from the auction was 1.675 per cent, that is, 1.4 basis points higher than that on bills with a similar tenor issued on June 12. The latest yield represented a bid price of 99.5784 per 100 nominal.
Today the Treasury will invite tenders for 273-day bills maturing on March 26, 2010.
Treasury Bill trading on the Malta Stock Exchange amounted to €12.27 million during the week, with all trades being conducted by the Central Bank of Malta in its role as market maker. Off-exchange transactions amounted to €0.44 million.