ECB monetary operations

On September 23, the European Central Bank (ECB) announced its weekly main refinancing operations (MRO). The operation was conducted on September 24 and attracted bids from euro area eligible counterparties of €2.80 billion, €0.78 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 0.00 per cent, in accordance with current ECB policy.

On September 25, 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 €0.85 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.

Also on September 25, 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 $0.97 billion, which was allotted in full at a fixed rate of 2.41 per cent.

Domestic Treasury Bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 92-day and 364-day bills for settlement value September 26, maturing on December 27 and September 24, 2020, respectively.

Bids of €50 million were submitted for the 92-day bills, with the Treasury accepting €20 million, while bids of €50 million were also submitted for the 364-day bills, with the Treasury accepting €3 million. Since €30 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €7 million, at €279.30 million.

The yield from the 92-day bill auction was -0.401 per cent, a decrease of 0.5 basis point from bids with a similar tenor issued on September 19, representing a bid price of €100.1026 per €100 nominal. The yield from the 364-day bill auction was -0.315 per cent, an increase of 1.4 basis points from bids with a similar tenor issued on July 25, representing a bid price of €100.3195 per €100 nominal.

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

Today the Treasury will invite tenders for 28-day and 91-day bills maturing on October 31, 2019 and January 2, 2020, respectively.

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