On November 27, the European Central Bank announced its weekly main refinancing operation (MRO). The operation was conducted on November 28 and attracted bids from euro area eligible counterparties of €4.99 billion, €2.02 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 29, 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 €2.88 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy. Also on November 29, 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 1.66 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 29-day and 91-day bills for settlement value November 30, maturing on December 29 and March 1, 2018, respectively. Bids of €45 million were submitted for the 29-day bills, with the Treasury accepting €5 million, while bids of €55 million were submitted for the 91-day bills, with the Treasury accepting €30 million. Since €32 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €3 million, to stand at €192.40 million.
The yield from the 29-day bill auction was -0.378 per cent, down by 0.3 basis point from bids with a similar tenor issued on November 23, representing a bid price of €100.0305 per €100 nominal. The yield from the 91-day bill auction was -0.375 per cent, also down by 0.3 basis point from bids with a similar tenor issued on November 16, representing a bid price of €100.0949 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 181-day bills maturing on March 8 and June 6, 2018, respectively.