On May 29, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on May 30 and attracted bids from euro area eligible counterparties of €12.07 billion, €3.84 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 May 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 €3.05 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on May 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 $0.04 billion, which was allotted in full at a fixed rate of 1.41 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182-day bills for settlement value June 1, maturing on August 31 and November 30, respectively. Bids of €42 million were submitted for the 91-day bills, with the Treasury accepting €7 million, while bids of €55 million were submitted for the 182-day bills, with the Treasury accepting €2 million.
Since €10 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €1 million, to stand at €208 million.
The yield from the 91-day bill auction was -0.330 per cent, down by 0.9 basis points from bids with a similar tenor issued on May 25, representing a bid price of €100.0835 per €100 nominal.
The yield from the 182-day bill auction was -0.300 per cent, down by 1.0 basis point from bids with a similar tenor issued on May 18, representing a bid price of €100.1519 per €100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
Yesterday the Treasury invited tenders for 91-day and 182-day bills maturing on September 7 and December 7, respectively.