On Monday, June 27, the European Central Bank announced its weekly main refinancing operation (MRO). The operation was conducted on Tuesday, June 28, and attracted bids from euro area eligible counterparties of €53.05 billion, €3.17 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 Wednesday, June 29, 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 €7.73 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on Wednesday, June 29, 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 $1.52 billion, which was allotted in full at a fixed rate of 0.89 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 September 29 and December 29. Bids of €30 million were submitted for the 91-day bills, with the Treasury accepting €18 million, while bids of €15.05 million were submitted for the 182 -day bills, with the Treasury accepting €1.80 million. Since €10 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €9.80 million, to stand at €313.25 million. The yield from the 91-day bill auction was -0.280 per cent, down by 0.5 basis point from bids with a similar tenor issued on June 23, representing a bid price of 100.0708 per 100 nominal. The yield from the 182-day bill auction was -0.260 per cent, also down by a 0.5 basis point from bids with a similar tenor also issued on June 23, representing a bid price of 100.1316 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 364 -day bills maturing on October 6 and July 6, 2017, respectively.