On December 3, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on December 4 and attracted bids from euro area eligible counterparties of €6.6 billion, €0.06 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 0.00 per cent, in accordance with current ECB policy.
On December 5, 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 $0.12 billion, which was allotted in full at a fixed rate of 2.70 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182-day bills for settlement value December 6, 2018, maturing on March 7, and June 6, 2019, respectively. Bids of €45 million were submitted for the 91-day bills, with the Treasury accepting €32.50 million, while bids of €50 million were submitted for the 182-day bills, with the Treasury accepting €2.50 million. Since €36 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €1 million, to stand at €289.10 million.
The yield from the 91-day bill auction was -0.355 per cent, unchanged from bids with a similar tenor also issued on November 22, representing a bid price of €100.0898 per €100 nominal. Similarly, the yield from the 182-day bill auction was -0.355 per cent, also unchanged from bids with a similar tenor issued on November 1, representing a bid price of €100.1798 per €100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
Yesterday, the Treasury invited tenders for 92-day and 183-day bills maturing on March 14, and June 13, 2019, respectively.