ECB monetary operations

On November 4, the European Central Bank announced its weekly main refinancing operations (MRO). The operation was conducted on November 5 and attracted bids from euro area eligible counterparties of €1.56 billion, €0.68 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 6, 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 $0.04 billion, which was allotted in full at a fixed rate of 2.07 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 7, maturing on December 5, and February 6, 2020, respectively. Bids of €45 million were submitted for the 28-day bills, with the Treasury accepting €18 million, while bids of €40 million were submitted for the 91-day bills, with the Treasury accepting €12 million. Since €29 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €1 million, at €291.30 million.

The yield from the 28-day bill auction was -0.406 per cent, a decrease of 0.1 basis point from bids with a similar tenor issued on October 31, representing a bid price of €100.0316 per €100 nominal. The yield from the 91-day bill auction was -0.410 per cent, unchanged from bids with a similar tenor issued on October 24, representing a bid price of €100.1037 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 December 12 and February 13, 2020, respectively.