On Monday, June 6, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on Tuesday, June 7, and attracted bids from euro area eligible counterparties of €50.85 billion, €1.06 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 0.00 per cent, in accordance with current ECB policy.

On Wednesday, June 8, 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 $5 million, which was allotted in full at a fixed rate of 0.87 per cent.

During the week under review, participants in the first series of targeted longer-term refinancing operations (TLTROs) had the option of terminating or reducing their outstanding amount in those operations before maturity. Accordingly on Wednesday, June 29, a total of €367.86 billion will be repaid.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 90-day and 181-day bills, maturing on September 7 and December 7. Bids of €35 million were submitted for the 90-day bills, with the Treasury accepting €12 million, while bids of €20 million were submitted for the 181-day bills, with the Treasury accepting €3 million. Since €31 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €16 million, to stand at €320 million.

The yield from the 90-day bill auction was -0.24 per cent, down by a 0.5 basis point from bids with a similar tenor issued on June 2, representing a bid price of 100.0600 per 100 nominal. The yield from the 181-day bill auction was also -0.24 per cent, also down by 0.5 basis point from bids with a similar tenor also issued on June 2, representing a bid price of 100.1208 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 September 15 and December 15, respectively.

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