On Monday, September 28, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The auction was conducted on Tuesday, September 29, and attracted bids from euro area eligible counterparties of €72.55 billion, €1.47 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, September 30, 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 €11.84 billion from euro area eligible counterparties, which amount was allotted in full in accordance with current ECB policy.

Also on Wednesday, September 30, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.14 billion, which was allotted in full at a fixed rate of 0.64 per cent.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 91-day bills maturing on October 29 and December 31respectively. Bids of €19 million were submitted for the 28-day bills, with the Treasury accepting €4 million, while bids of €19 million were also submitted for the 91-day bills, with the Treasury accepting €15.50 million. Since €5 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €14.50 million, to stand at €267.10 million.

The yield from the 28-day bill auction was 0.000 per cent, down by 1.0 basis point from bids with a similar tenor issued on February 20, representing a bid price of 100.000 per 100 nominal. The yield from the 91-day bill auction was 0.000 per cent, up by 0.1 basis point from bids with a similar tenor issued on September 25, representing a bid price of 100.0000 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 bills maturing on November 5.

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