On January 7, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on January 8, and attracted bids from euro area eligible counterparties of €7.33 billion, €0.89 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 9, 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 $0.09 billion, which was allotted in full at a fixed rate of 2.91 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 January 10, maturing on April 11.
Bids of €20 million were submitted, with the Treasury accepting €17 million. Since €1 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €16.00 million, to stand at €326 million.
The yield from the 91-day bill auction was -0.342 per cent, up by 0.6 basis point from bids with a similar tenor issued on January 3, representing a bid price of €100.0865 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 April 18, and October 17, respectively.