On September 24, the European Central Bank announced its weekly main refinancing operation (MRO). The operation was conducted on September 25 and attracted bids from euro area eligible counterparties of €6.43 billion, €1.47 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 September 26, 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 €1.26 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.

Also on September 26, 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 $0.07 billion, which was allotted in full at a fixed rate of 2.67 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 92-day bills for settlement value September 27, 2018, maturing on December 28, 2018. Bids of €55 million were submitted, with the Treasury accepting €18 million. Since €23  million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €5 million, to stand at €325.5 million.

The yield from the 92-day bill auction was -0.354 per cent, unchanged from bids with a similar tenor issued on September 20, representing a bid price of €100.0905 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 182-day bills maturing on November 1, 2018 and April 4, 2019, respectively.