On Monday, September 8, 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 €110.70 billion, €0.50 billion lower 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 0.05 per cent, in accordance with current ECB policy.
On Wednesday, September 10, 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 and 182-day bills maturing on December 12, and March 13, 2015, respectively. Bids of €28 million were submitted for the 91-day bills, with the Treasury accepting €8.50 million, while bids of €35.50 million were submitted for the 182-day bills, with the Treasury accepting €1.50 million. Since €23.50 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €13.50 million, to stand at €333.57 million.
The yield from the 91-day bill auction was 0.146 per cent, i.e. 2.9 basis points lower than on bills with a similar tenor issued on September 5, 2014, representing a bid price of 99.9631 per 100 nominal. The yield from the 182-day bill auction was 0.203 per cent, i.e. 8.7 basis points lower than on bills with a similar tenor issued on August 22, representing a bid price of 99.8975 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 19.