On April 30, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on May 2 and attracted bids from euro area eligible counterparties of €2.56 billion, €0.24 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 2, the ECB conducted an eight-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve.
This operation attracted bids of $0.08 billion, which was allotted in full at a fixed rate of 2.21 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders 91-day and 182-day bills for settlement value May 3, maturing on August 2, and November 1, respectively. Bids of €34 million were submitted for the 91-day bills, with the Treasury accepting €22 million, while bids of €30 million were submitted for the 182-day bills, with the Treasury accepting €4 million.
Since €15 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €11 million, to stand at €324 million. The yield from the 91-day bill auction was -0.354 per cent, unchanged from bids with a similar tenor issued on April 26, representing a bid price of €100.0896 per €100 nominal. The yield from the 182-day bill auction was -0.355 per cent, up by 0.1 basis point from bids with a similar tenor also issued on April 26, representing a bid price of €100.1798 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 August 9, and November 8 respectively.