On Wednesday, January 2, the European Central Bank (ECB) conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.98 billion, which was allotted in full at a fixed rate of 0.66 per cent.
On the same day, the ECB, in conjunction with the US Federal Reserve, conducted an 84-day US dollar funding operation through collateralised lending. This attracted bids of $0.86 billion, which amount was allotted in full at a fixed rate of 0.65 per cent.
On Wednesday, January 2, the ECBalso announced its weekly main refinancing operation. The auction was conducted on Thursday, January 3, and attracted bids from euro area eligible counterparties of €81.10 billion, €8.56 billion lower than the bid amount in the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing main refinancing rate of 0.75 per cent, in accordance with current ECB policy.
On Thursday, January 3, the ECB also conducted an auction for a seven-day fixed-term deposit intended to absorb €208.5 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 28. 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 0.75 per cent. It attracted bids amounting to €324.05 billion with the ECB allotting €208.5 billion, or 64.34 per cent of the total bid amount. The marginal rate on the auction was set at 0.01 per cent, with the weighted average rate also set at 0.01 per cent.
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 April 5 and July 5, 2013, respectively. Bids of €47.25 million were submitted for the 91-day bills, with the Treasury accepting €38.85 million, while bids of €36.47 million were submitted for the 182-day bills with the Treasury accepting €27.47 million. Since €9.05 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €57.26 million, to stand at €211.40 million.
The yield from the 91-day bill auction was 0.774 per cent, i.e. eight basis points lower than that on bills with a similar tenor issued on December 21, 2012, representing a bid price of 99.8047 per 100 nominal. The yield from the 182-day bill auction was 0.945 per cent, i.e. 20.3 basis points lower than on bills with a similar tenor issued on December 14, 2012, representing a bid price of 99.5245 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 and 182-day bills maturing on April 12 and July 12, respectively.