ECB monetary operations

On July 29, the European Central Bank (ECB) announced its weekly main refinancing operations (MRO). The operation was conducted on July 30, and attracted bids from euro area eligible counterparties of €3.60 billion, €0.69bn higher 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 0.00 per cent, in accordance with current ECB policy.

On July 31, 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 €0.79 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy. Also on July 31, the ECB conducted a six-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.03 billion, which was allotted in full at a fixed rate of 2.61 per cent.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 273-day bills for settlement value August 1, 2019, maturing on October 31, 2019, and April 30, 2020, respectively. Bids of €50 million were submitted for the 91-day bills, with the Treasury accepting €20 million, while bids of €50 million were also submitted for the 273-day bills, with the Treasury accepting €2 million. Since €35 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €13 million, at €311.80 million.

The yield from the 91-day bill auction was -0.365 per cent, an increase of 0.8 basis points from bids with a similar tenor issued on July 25, representing a bid price of €100.0923 per €100 nominal. The yield from the 273-day bill auction was -0.330 per cent, a decrease of 4.5 basis points from bids with a similar tenor issued on March 21, 2019, representing a bid price of €100.2509 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 maturing on November 7, 2019.

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