On June 25, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on June 26 and attracted bids from euro area eligible counterparties of €2.74 billion, €1.19 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 June 27, 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 €2.27 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on June 27, the ECB conducted an eighth-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $1.09 billion, which was allotted in full at a fixed rate of 2.43 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 183-day bills for settlement value June 28, maturing on September 27, and December 28, respectively. Bids of €30 million were submitted for the 91-day bills, with the Treasury accepting €20 million, while bids of €20 million were submitted for the 183-day bills, with the Treasury accepting €2 million. Since €20 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €2 million, to stand at €335 million.
The yield from the 91-day bill auction was -0.354 per cent, unchanged from bids with a similar tenor issued on June 21, representing a bid price of €100.0896 per €100 nominal. The yield from the 183-day bill auction was -0.357 per cent, up by 0.2 basis point from bids with a similar tenor also issued on June 21, representing a bid price of €100.1818 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 October 4 and April 4, 2019, respectively.