On January 29, the European Central Bank announced its weekly main refinancing operation (MRO). The operation was conducted on January 30 and attracted bids from euro area eligible counterparties of €1.91 billion, €0.25 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 January 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 €2.52 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on January 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 1.93 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills for settlement value February 1, maturing on May 3. Bids of €60 million were submitted, with the Treasury accepting €15 million. Since €23 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €8 million, to stand at €184 million.
The yield from the 91-day bill auction was -0.381 per cent, down by 0.2 basis point from bids with a similar tenor issued on January 25, representing a bid price of €100.0964 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 273-day bills maturing on May 10 and November 8, respectively.