On Monday, April 25, the European Central Bank announced its weekly main refinancing operation (MRO). The operation was conducted on Tuesday, April 26, and attracted bids from euro area eligible counterparties of €56.26 billion, €2.24 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 zero per cent, in accordance with current ECB policy.
On Wednesday, April 27, 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 €9.39 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on Wednesday, April 27, the ECB conducted an eight-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $1.20 billion, which was allotted in full at a fixed rate of 0.85 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills maturing on July 28. Bids of €72 million were submitted, with the Treasury accepting €14 million. Since €17 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €3 million, to stand at €329.65 million.
The yield from the 91-day bill auction was -0.183 per cent, down by 0.4 basis point from bids with a similar tenor issued on April 21, representing a bid price of 100.0463 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 and 182-day bills maturing on August 4 and November 3, respectively.