ECB monetary operations

On November 25, the European Central Bank announced its weekly main refinancing operations (MRO). The operation was conducted on November 26  and attracted bids from euro area eligible counterparties of €2.53 billion, €0.64 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 November 27, 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 €1.42 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy. Also, on November 27, 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 $0.05 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 29-day and 91-day bills for settlement value November 28, maturing on December 27 and February 27, 2020, respectively.

Bids of €45 million were submitted for the 29-day bills, with the Treasury accepting €20.00 million, while bids of €50 million were submitted for the 91-day bills, with the Treasury accepting €15 million. Since €42 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €7 million, standing at €279.30 million.

The yield from the 29-day bill auction was -0.419per cent, an increase of 0.2 basis point from bids with a similar tenor issued on November 21, representing a bid price of €100.0338 per €100 nominal. The yield from the 91-day bill auction was -0.415 per cent, a drop of 1.2 basis points from bids with a similar tenor issued on November 14, representing a bid price of €100.1050 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 March 5, 2020 and June 4, 2020, respectively.