On Monday, August 25, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The auction was conducted the following day and attracted bids from euro area eligible counterparties of €131.76 billion, €24.15 billion higher than the bid amount of the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 0.15 per cent, in accordance with current ECB policy.
On Wednesday, August 27, the ECB conducted a three-month longer-term refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average rate of the MROs over the life of the operation.
The auction attracted bids of €7.24 billion from euro area eligible counterparties, which amount was allotted in full in accordance with current ECB policy.
Also on Wednesday, August 27, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted one bid of $0.08 billion, which was allotted in full at a fixed rate of 0.59 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills maturing on November 28. Bids of €35.50 million were submitted for the 91-day bills, with the Treasury accepting €6 million. Since €10 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €4 million, to stand at €352.07 million.
The yield from the 91-day bill auction was 0.209 per cent, i.e. 3.1 basis points lower than on bills with a similar tenor issued on August 22, representing a bid price of 99.9472 per 100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
Today, the Treasury will invite tenders for 91-day bills maturing on December 5, 2014.