On Monday, October 3, the European Central Bank announced its weekly main refinancing operation (MRO). The operation was conducted on Tuesday, October 4, and attracted bids from euro area eligible counterparties of €34.37 billion, €4.37 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 Wednesday, October 5, 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 $2.80 billion, which was allotted in full at a fixed rate of 0.90 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day bills maturing on November 3. Bids of €35 million were submitted for the 28-day bills, with the Treasury accepting €5 million. Since €13 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €8 million, to stand at €261.75 million.
The yield from the 28-day bill auction was -0.390 per cent, unchanged from bids with a similar tenor issued on September 29, representing a bid price of 100.0303 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 maturing on November 10.