On Monday, January 12, 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 €113.99 billion, €1.65 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 0.05 per cent, in accordance with current ECB policy.

On Wednesday, January 14, 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 0.62 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 91-day and 182-day bills maturing on April 17, and July 17, respectively. Bids of €59 million were submitted for the 91-day bills, with the Treasury accepting €8 million, while bids of €47 million were submitted for the 182-day bills, with the Treasury accepting €20 million. Since no bills matured during the week, the outstanding balance of Treasury bills increased by €28 million, to stand at €185.44 million.

The yield from the 91-day bill auction was 0.025 per cent, i.e. 1.0 basis point lower than on bills with a similar tenor issued on January 9, representing a bid price of 99.9937 per 100 nominal. The yield from the 182-day bill auction was 0.055 per cent, i.e. 0.3 basis point higher than on bills with a similar tenor issued on January 2, representing a bid price of 99.9722 per 100 nominal.

During the week under review, there was no trading on the Malta Stock Exchange.

Today, the Treasury will invite tenders for 28-day and 91-day bills maturing on February 20, and April 24, respectively.