ECB Monetary Operations

On Monday, 16 February, the ECB announced its weekly Main Refinancing Operation (MRO). This attracted bids for e215.29 billion from euro area eligible counterparties, which amount was allotted in full at a fixed rate equivalent to the prevailing main refinancing rate of 2.00%.

On the same day, the Eurosystem and the Swiss National Bank (SNB) conducted a EUR/CHF foreign exchange swap, with a 7-day maturity, to provide Swiss Franc liquidity against euro. This operation attracted bids for e23.71 billion. Since these did not exceed the pre-announced allotment volume of e25 billion, the full amount was allotted at a fixed price of -4.67 swap points.

On Wednesday, 18 February, the ECB, in conjunction with the US Federal Reserve, conducted a 7-day US dollar funding operation through collateralised lending. This attracted bids for $65.85 billion, which amount was allotted in full at a fixed rate of 1.25%.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills maturing on 22 May 2009. Bids for e42.51 million were submitted, with the Treasury accepting e36.02 million. Since e28.26 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by e7.76 million to e461.59 million.

The yield resulting from the auction was 2.319%, that is, 0.6 basis points higher than that on bills with a similar tenor issued on 13 February. The latest yield represented a bid price of 99.4172 per 100 nominal.

Last Tuesday the Treasury invited tenders for 91-day bills maturing on 29 May.

Treasury bill trading on the Malta Stock Exchange amounted to e5.00 million during the week, with all trades being conducted by the Central Bank of Malta in its role as market maker. Off-exchange transactions amounted to e0.05 million.