ECB Monetary Operations

On Monday, 12 January, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The auction was conducted on Tuesday, 13 January and attracted bids from euro area eligible counterparties of €113.99bn, €1.65bn higher 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 0.05%, in accordance with current ECB policy.

On Wednesday, 14 January 14, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation was carried out at a fixed rate of 0.62% and did not attract bids from euro area eligible counterparties.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91- and 182-day bills maturing on 17 April and 17 July, respectively. Bids of €59m were submitted for the 91-day bills, with the Treasury accepting €8m, while bids of €47m were submitted for the 182-day bills, with the Treasury accepting €20m. Since no bills matured during the week, the outstanding balance of Treasury bills increased by €28m, to stand at €185.44m.

The yield from the 91-day bill auction was 0.025%, that is, 1.0 basis point lower than on bills with a similar tenor issued on 9 January, representing a bid price of 99.9937 per 100 nominal. The yield from the 182-day bill auction was 0.055%, that is, 0.3 basis point higher than on bills with a similar tenor issued on 2 January, representing a bid price of 99.9722 per 100 nominal.

During the week under review, there was no trading on the Malta Stock Exchange.

This week the Treasury will invite tenders for 28- and 91-day bills maturing on 20 February and 24 April, respectively.