ECB monetary operations

On December 16, the European Central Bank announced its weekly main refinancing operations (MRO). The operation was conducted on December 17 and attracted bids from euro area eligible counterparties of €2.48 billion, €1.09 billion more 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 December 18, 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 €2.28 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.

Also, on December 18, the ECB conducted a 21-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $3.73 billion, which was allotted in full at a fixed rate of 2.05 per cent.

 

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 90-day bills for settlement value December 19, maturing on March 18, 2020. Bids of €50 million were submitted, with the Treasury accepting €40 million. Since €36.30 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €3.70 million, standing at €298 million.

The yield from the 90-day bill auction was -0.420 per cent, an increase of 0.3 basis point from bids with a similar tenor issued on December 12, representing a bid price of €100.1051 per €100 nominal.

During the week under review, there was no trading on the Malta Stock Exchange.

Yesterday, the Treasury invited tenders for 90-day bills maturing on March 26, 2020.

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