ECB monetary operations
On May 31, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on June 1 and attracted bids from euro area eligible counterparties of €197 million, €179 million less than 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 2, 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 $108 million, which were allotted in full at a fixed rate of 0.31 per cent. The 84-day USD operation attracted bids of $20 million, which were 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 91-day bills and 273-day bills for settlement value June 3, maturing on September 2 and March 3 respectively. Bids of €90 million were submitted for the 91-day bills, with the Treasury accepting €28 million, while bids of €95 million were submitted for the 273-day bills, with the Treasury accepting €3 million. Since €41 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €10 million, standing at €805.25 million.
The yield from the 91-day bill auction was -0.455 per cent, a decrease of 0.1 basis point from bids with a similar tenor issued on May 27, representing a bid price of €100.1151 per €100 nominal. The yield from the 273-day bill auction was -0.461 per cent, decreasing by 1.2 basis points from bids with a similar tenor issued on May 6, representing a bid price of €100.3508 per €100 nominal.
During the week 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 September 9 and December 9, respectively.