On August 27, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on August 28, and attracted bids from euro area eligible counterparties of €2.54 billion, €0.25bn 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 August 29, the ECB conducted a three-month, longer-term refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average rate of the MROs over the life of the operation. The operation attracted bids of €1.45 billion from euro area eligible counterparties.
The amount was allotted in full in accordance with current ECB policy. Also on August 29, 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 2.42 per cent.
Domestic Treasury Bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 91-day bills for settlement value August 30, maturing on September 27, and November 29, respectively. Bids of €25.50 million were submitted for the 28-day bills, with the Treasury accepting €3m, while bids of €27m were submitted for the 91-day bills, with the Treasury accepting €20m. Since €28.10 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €5.10m, to stand at €351.50m.
The yield from the 28-day bill auction was -0.356 per cent, unchanged from bids with a similar tenor issued on August 16, representing a bid price of €100.0277 per €100 nominal. The yield from the 91-day bill auction was also -0.356 per cent, up by 0.2 basis point from bids with a similar tenor issued on August 23, representing a bid price of €100.0901 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 182-day bills maturing on December 6, 2018, and March 7, 2019, respectively.