On Monday, August 8, 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 €41.62 billion, €1.37 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, August 10, 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 $0.11 billion, which was allotted in full at a fixed rate of 0.90 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 273-day bills, maturing on November 10, and May 11, 2017. Bids of €35 million were submitted for the 91-day bills, with the Treasury accepting €14 million, while bids of €46.50 million were submitted for the 273-day bills, with the Treasury accepting €2 million. Since no bills matured during the week, the outstanding balance of Treasury bills increased by €16 million, to stand at €304.95 million.

The yield from the 91-day bill auction was -0.321 per cent, down by 0.1 basis point from bids with a similar tenor issued on August 4, representing a bid price of 100.0812 per 100 nominal. The yield from the 273-day bill auction was -0.290 per cent, down by 23 basis points from bids with a similar tenor issued on March 17, representing a bid price of 100.2204 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 bills maturing on November 17.