On August 21, the European Central Bank announced its weekly main refinancing operation. The operation was conducted on August 22 and attracted bids from euro area eligible counterparties of €7.27 billion, €2.46 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 August 23, 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 1.64 per cent.a fixed rate of 1.64 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day for settlement value August 24, maturing on November 23. Bids of €70 million were submitted for the 91-day bills, with the Treasury accepting €12 million. Since €11 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €1 million, to stand at €145.40 million.
The yield from the 91-day bill auction was -0.353 per cent, down by 0.2 basis points from bids with a similar tenor issued on August 17, representing a bid price of €100.0893 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 bills maturing on November 30.