On Monday, March 29, the European Central Bank (ECB) announced its weekly Main Refinancing Operation (MRO). This auction, which was conducted last Tuesday, attracted bids for €78.27 billion from euro area eligible counterparties, which amount was allotted in full at a fixed rate equivalent to the prevailing main refinancing rate of one per cent in accordance with the current ECB policy.
As announced by the Governing Council in a press release dated December 3, on Tuesday, March 30, the ECB announced its last Longer-Term Refinancing Operation (LTRO) with a maturity of 182-days.
This operation attracted bids for €17.88 billion from euro area eligible counterparties, which amount was allotted in full at a rate to be fixed at the average minimum bid rate of the MROs over the life of the operation.
Also on Tuesday, March 30, the ECB announced an LTRO with a maturity of 91 days. This operation attracted bids for €2.02 billion, which amount was allotted in full at a fixed rate equivalent to the prevailing main refinancing rate of one per cent.
In the domestic primary market for Treasury Bills, the Treasury invited tenders for 92-day Bills maturing on July 2. Bids for €102.30 million were submitted, with the Treasury allotting €40.32 million.
Since €35.56 million worth of bills matured during the week, the outstanding balance of Treasury Bills increased by €4.76 million to €539.52 million.
The yield resulting from the auction was 0.710 per cent, i.e. nine basis points less than that on bills with a similar tenor issued on March 26 and a new record low. It represented a bid price of 99.8189 per 100 nominal.
Treasury Bill trading on the Malta Stock Exchange amounted to €1.74 million during the week, with all trades being conducted by the Central Bank of Malta in its role as market maker.
Today, the Treasury will invite tenders for 91-day bills maturing on July 9 and 182-day bills maturing on October 8.