On Monday, December 15, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The auction was conducted the following day and attracted bids from euro area eligible counterparties of €99.03 billion, €6.19 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 0.05 per cent, in accordance with current ECB policy.

On Wednesday, December 17, 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 €22.35 billion from euro area eligible counterparties, which amount was allotted in full in accordance with current ECB policy.

Also on Wednesday, the ECB conducted a 21-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation was carried out at a fixed rate of 0.61 per cent and did not attract bids from euro area eligible counterparties.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182-day bills maturing on March 20, 2015, and June 19, 2015, respectively. Submitted bids were €45 million for the 91-day bills, and €52 million for the 182-day bills, with the Treasury accepting no bids from both tenors. Since €35 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €35 million, to stand at €174.94 million.

During the week under review, there was no trading on the Malta Stock Exchange.

This week, the Treasury will invite tenders for 30-day and 93-day bills maturing on January 23 and March 27 respectively.