Low activity in secondary Treasury bill market

On Monday, January 21, the European Central Bank (ECB) announced the weekly Main Refinancing Operation (MRO), through which the Eurosystem injects liquidity with a standard maturity of seven days into the eurozone money market. This liquidity-providing operation attracted bids for €234.6 billion from eurozone eligible counterparties, with the ECB allotting €175.5 billion, or 74.8 per cent of the total amount bid for. The marginal rate, which is the rate at which the total tender allotment is exhausted, was set by the ECB at 4.16 per cent which was unchanged when compared to the marginal rate of the previous week. Although one domestic counterparty participated in this operation, it was unsuccessful since its bids were submitted below the marginal rate.

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills maturing on April 25, this year. Although bids amounting to €23.7 million were submitted, none were accepted by the Treasury. As €16.5 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by the same amount €301.1 million.

Today the Treasury will invite tenders for 182-day bills maturing on August 1, this year.

Treasury bill trading on the Malta Stock Exchange amounted to €1.8 million during the week with all transactions being conducted by the CBM in its role as market maker in the secondary market. There were no off-exchange transactions.