On Monday, November 23, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted the following day and attracted bids from euro area eligible counterparties of €73.77 billion, €13.25 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, November 25, 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 operation attracted bids of €21.78 billion from euro area eligible counterparties, which amount was allotted in full in accordance with current ECB policy.
Also on Wednesday, November 25, the ECB conducted a six-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.13 billion, which was allotted in full at a fixed rate of 0.62 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 182-day bills maturing on December 24 and May 26, 2016, respectively. Bids of €20 million were submitted for the 28-day bills, with the Treasury accepting €17 million, while bids of €53 million were submitted for the 182-day bills, with the Treasury accepting €8 million. Since €10.40 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €14.60 million, to stand at €227.85 million. The yield from the 28-day bill auction was -0.020 per cent, up by 0.2 basis points from bids with a similar tenor issued on November 19, representing a bid price of 100.0016 per 100 nominal. The yield from the 182-day bill auction was -0.051 per cent, down by 5.1 basis points from bids with a similar tenor issued on October 22, representing a bid price of 100.0258 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 December 31 and March 3, 2016, respectively.