On November 26, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on November 27 and attracted bids from euro area eligible counterparties of €6.54 billion, €0.18 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 November 28, 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 €1.95 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on November 28, 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 $0.19 billion, which was allotted in full at a fixed rate of 2.72 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 29-day bills for settlement value November 29, maturing on December 28.
Bids of €70 million were submitted, with the Treasury accepting €17 million. Since €37 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €20 million, to stand at €290.10 million.
The yield from the 29-day bill auction was -0.356 per cent, a decrease of 0.1 basis point from bids with a similar tenor also issued on November 22, representing a bid price of €100.0287 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 March 7, and June 6, 2019, respectively.