On January 23, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on January 24 and attracted bids from euro area eligible counterparties of €33.99 billion, €1.66 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 0.00 per cent, in accordance with current ECB policy.
On January 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 €3.35 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on January 25, 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 $0.27 billion, which was allotted in full at a fixed rate of 1.15 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 for settlement value January 26, maturing on February 23 and July 27, respectively.
Bids of €55 million were submitted for the 28-day bills, with the Treasury accepting €2 million, while bids of €60 million were submitted for the 182-day bills, with the Treasury accepting €8 million.
Since no bills matured during the week, the outstanding balance of Treasury bills increased by €10 million, to stand at €278.20 million.
The yield from the 28-day bill auction was -0.396 per cent, down by 0.2 basis point from bids with a similar tenor issued on December 15, 2016, representing a bid price of €100.0308 per €100 nominal. The yield from the 182-day bill auction was -0.392 per cent, down by 0.1 basis point from bids with a similar tenor issued on January 19, representing a bid price of €100.1986 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 May 4 and August 3, respectively.