On March 27, 2017, the European Central Bank announced its weekly main refinancing operation (MRO). The operation was conducted on March 28 and attracted bids from euro area eligible counterparties of €14.76 billion, €17.93 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 zero per cent, in accordance with current ECB policy.

On March 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 operation attracted bids of €1.31 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.

Also on March 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 $4.53 billion, which was allotted in full at a fixed rate of 1.36 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 274-day bills for settlement value March 30, maturing on December 29. Bids of €30 million were submitted, with the Treasury accepting €3 million. Since €5 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €2 million, to stand at €225.20 million.

The yield from the 274-day bill auction was -0.230 per cent, up by 15.7 basis points from bids with a similar tenor issued on February 9, representing a bid price of €100.1754 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 July 6, and October 5, respectively.