On Friday, December 20, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The auction was conducted on Monday, December 23, and attracted bids from euro-area eligible counterparties of €133.58 billion, €14.67 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 0.25 per cent, in accordance with current ECB policy.

Also on Monday, December 23, the ECB conducted an auction for a seven-day fixed-term deposit intended to absorb €178.5 billion. This operation was designed to sterilise the effect of purchases made under the Securities Markets Programme that were settled but had not yet matured by the previous Friday, December 20. The auction was carried out at a variable rate, with euro-area eligible counterparties allowed to place up to four bids at a maximum rate of 0.25 per cent. It attracted bids amounting to €139.92 billion, with the ECB allotting the full amount. The marginal rate on the auction was set at 0.25 per cent, with the weighted average rate at 0.24 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills maturing on March 28. Bids of €69.5 million were submitted, with the Treasury accepting €33.5 million. Since €46 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €12.5 million, to stand at €248.12 million.

The yield from the 91-day bill auction was 0.385 per cent, i.e. 0.5 basis point lower than on bills with a similar tenor issued on December 20, 2013, representing a bid price of 99.9028 per 100 nominal.

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

Today the Treasury will invite tenders for 28-day bills and 273-day bills maturing on January 31 and October 3 respectively.