On January 28, the European Central Bank (ECB) announced its weekly main refinancing operations (MRO). The operation was conducted on January 29, and attracted bids from euro area eligible counterparties of €6.57 billion, €0.002 billion 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 January 30, 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 €0.95 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on January 30, 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 $0.06 billion, which was allotted in full at a fixed rate of 2.90 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills and 182-day bills for settlement value January 31, maturing on May 2, and August 1, respectively. Bids of €40 million were submitted for the 91-day bills, with the Treasury accepting €13 million, while bids of €42 million were submitted for the 182-day bills, with the Treasury accepting €20 million. Since no bills matured during the week, the outstanding balance of Treasury bills increased by €33 million, to stand at €387 million.
The yield from the 91-day bill auction was -0.343per cent, unchanged from bids with a similar tenor issued on January 24, representing a bid price of €100.0868 per €100 nominal. The yield from the 182-day bill auction was -0.289 per cent, an increase of 0.2 basis point from bids with a similar tenor issued also on January 24, representing a bid price of €100.1463 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 May 9, and August 8, respectively.
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