ECB monetary operations

On January 4, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on January 5 and attracted bids from euro area eligible counterparties of €0.18 billion, €0.29 billion less 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 6, the ECB conducted the seven-day and 84-day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. The seven-day USD operation attracted bids of $0.05 billion, which was allotted in full at a fixed rate of 0.34 per cent. The 84-day USD operation attracted bids of $0.12 billion, also allotted in full at a fixed rate of 0.33 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 273-day bills for settlement value January 7, maturing on February 4 and October 7, respectively. Bids of €90 million were submitted for the 28-day bills, with the Treasury accepting €15 million, while bids of €95 million were submitted for the 273-day bills, with the Treasury accepting €5 million. Since €15 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €5 million, standing at €649 million.

The yield from the 28-day bill auction was -0.490 per cent, unchanged from bids with a similar tenor issued on November 26, representing a bid price of €100.0381 per €100 nominal. The yield from the 273-day bill auction was -0.493 per cent, an increase of 0.2 basis point from bids with a similar tenor issued on December 31, representing a bid price of €100.3753 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 bills and 182-day bills maturing on April 15, and July 15 respectively.