On Monday, December 27, the ECB announced its weekly Main Refinancing Operation (MRO). The auction was conducted on Tuesday, December 28, and attracted bids from euro area eligible counterparties of €227.87 billion, €34.40 billion more than the amount bid for the previous week. The bid amount was allotted in full at a fixed rate equivalent to the prevailing main refinancing rate of one per cent, in accordance with current ECB policy.

The next day, the ECB also conducted an auction for a seven-day fixed-term deposit intended to absorb €73.50 billion. The operation was designed to sterilise the effect of purchases made under the Securities Market Programme and settled by the previous Friday, December 24. The auction was carried out at a variable rate, with euro area eligible counterparties allowed to place up to two bids at a maximum rate of one per cent. The operation attracted bids amounting to €60.78 billion with the ECB allotting the total amount bid. The marginal rate on the auction was set at 1.00 per cent, with the weighted average rate at 0.66 per cent.

In the domestic primary market for Treasury Bills, the Treasury invited tenders for 182-day bills maturing on July 1, 2011. Bids of €72.98 million were submitted, but none were accepted by the Treasury. Since no bills matured during the week, the outstanding balance of Treasury Bills remained the same at €377.76 million.

Treasury Bill trading on the Malta Stock Exchange amounted to €2.10 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 April 8, 2011 and for 182-day bills maturing on July 8, 2011.