On Monday, September 22, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The auction was conducted on Tuesday, September 23, and attracted bids from euro area eligible counterparties of €90.31 billion, €15.38 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 24, 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 €10.97 billion from euro area eligible counterparties, which amount was allotted in full in accordance with current ECB policy.

Also on Wednesday, September 24, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation was carried out at a fixed rate of 0.59 per cent and did not attract bids from euro area eligible counterparties.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 89-day and 182-day bills maturing on December 24, 2014, and March 27, 2015, respectively. Bids of €38 million were submitted for the 89-day bills, with the Treasury accepting €13 million, while bids of €48.50 million were submitted for the 182-day bills, with the Treasury accepting €2 million. Since €23.50 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €8.50 million, to stand at €308.57 million.

The yield from the 89-day bill auction was 0.068 per cent, i.e. 5.1 basis points lower than on bills with a similar tenor issued on September 19, representing a bid price of 99.9832 per 100 nominal. The yield from the 182-day bill auction was 0.150 per cent, i.e. 5.30 basis points lower than on bills with a similar tenor issued on September 12, representing a bid price of 99.9242 per 100 nominal.

During the week, the Central Bank of Malta, in its role as market-maker, purchased €0.02 million worth of Treasury bills on the Malta Stock Exchange.

Today, the Treasury will invite tenders for 28-day and 91-day bills, maturing on October 31, 2014, and January 2, 2015, respectively.

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