On July 24, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on July 25 and attracted bids from euro area eligible counterparties of €7.35 billion, €0.52 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 July 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 €2.86 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy. Also on July 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 $0.04 billion, which was allotted in full at a fixed rate of 1.65 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 91-day bills for settlement value July 27, maturing on August 24, and October 26 respectively. Bids of €27 million were submitted for the 28-day bills, with the Treasury accepting €2 million, while bids of €40 million were submitted for the 91-day bills, with the Treasury accepting €5 million. Since €18 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €11 million, to stand at €161.40 million.
The yield from the 28-day bill auction was -0.372 per cent, down by 2.2 basis points from bids with a similar tenor issued on May 11, representing a bid price of €100.0289 per €100 nominal.
The yield from the 91-day bill auction was -0.342 per cent, down by 0.1 basis point from bids with a similar tenor issued on July 20, representing a bid price of €100.0865 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 November 2 and February 1, 2018, respectively.