On October 29, the European Central Bank announced its weekly main refinancing operation (MRO). The operation was conducted on October 30, and attracted bids from euro area eligible counterparties of €8.01 billion, €0.32 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 zero per cent, in accordance with current ECB policy.
On October 31, 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 €1.49 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on October 31 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 $0.08 billion, which was allotted in full at a fixed rate of 2.7 per cent.
Domestic Treasury Bill Market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 182-day bills for settlement value November 1, maturing on November 29, 2018, and May 2, 2019, respectively. Bids of €45 million were submitted for the 28-day bills, with the Treasury accepting €14 million, while bids of €57 million were submitted for the 182-day bills, with the Treasury accepting €22 million. Since €30 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €6 million, to stand at €306 million.
The yield from the 28-day bill auction was -0.355 per cent, down by 0.1 basis point from bids with a similar tenor issued on October 25, representing a bid price of €100.0276 per €100 nominal. The yield from the 182-day bill auction was -0.355 per cent, unchanged from bids with a similar tenor also issued on October 25, representing a bid price of €100.1798 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 and 91-day bills maturing on December 6, 2018, and February 7, 2019, respectively.