ECB monetary operations

On November 11, the European Central Bank (ECB) announced its weekly main refinancing operations (MRO). The operation was conducted on November 12 and attracted bids from euro area eligible counterparties of €1.55 billion, €0.01 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 November 13, 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 $0.05 billion, which was allotted in full at a fixed rate of 2.08 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 November 14, maturing on December 12 and February 13, 2020, respectively. Bids of €30 million were submitted for the 28-day bills, with the Treasury accepting €17 million, while bids of €30 million were also submitted for the 91-day bills, with the Treasury accepting €13 million. Since €30 million worth of bills matured during the week, the outstanding balance of Treasury bills remained unchanged, at €291.30 million.

The yield from the 28-day bill auction was -0.412 per cent, a decrease of 0.6 basis point from bids with a similar tenor issued on November 7, representing a bid price of €100.0321 per €100 nominal. The yield from the 91-day bill auction was -0.403 per cent, an increase of 0.7 basis point from bids with a similar tenor also issued on November 7, representing a bid price of €100.1020 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 182-day bills maturing on December 19 and May 21, 2020, respectively.