Eurosystem Monetary operations

On Monday, 4 February, the European Central Bank (ECB) announced the weekly Main Refinancing Operation (MRO), through which the Eurosystem injects liquidity with a standard maturity of seven days into the euro area money market. This operation attracted bids for e223.8 billion from euro area eligible counterparties, with the ECB allotting e161.5 billion, or 72.16% of the total amount bid for. The marginal rate, which is the rate at which the total tender allotment is exhausted, was set by the ECB at 4.17%, that is 1 basis point lower than the marginal rate of the previous week.

Domestic Treasury Bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills maturing on 9 May 2008. Bids for e15.74 million worth of bills were submitted, and out of these the Treasury accepted bids for e4.86 million. As e8.42 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by e3.6 million to e313.2 million.

The latest 91-day yield resulting from the auction was 4.178%, almost unchanged from the 4.187% yield on similar bills issued on 18 January 2008. This represented a bid price of 98.9549 per 100 nominal.

On Tuesday the Treasury invited tenders for 91-day bills maturing on 16 May 2008.

Treasury bill trading on the Malta Stock Exchange amounted to e0.77 million during the week, with all transactions being conducted by the Bank in its role as market maker in the secondary market. No transactions were conducted off-Exchange.