On May 7, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted on May 8 and attracted bids from euro area eligible counterparties of €2 billion, €0.56 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 0.00%, in accordance with current ECB policy.
On May 9, 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 $0.08 billion, which was allotted in full at a fixed rate of 2.21 per cent.
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182-day bills for settlement value on May 10, maturing on August 9 and November 8 respectively. Bids of €40 million were submitted for the 91-day bills, with the Treasury accepting €17 million, while bids of €37 million were submitted for the 182-day bills, with the Treasury accepting €2.5 million. Since €10 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €9.5 million, to stand at €333.50 million.
The yield from the 91-day bill auction was -0.356 per cent, down by 0.2 basis point from bids with a similar tenor issued on May 3, representing a bid price of €100.0901 per €100 nominal. The yield from the 182-day bill auction was -0.355 per cent, unchanged from bids with a similar tenor also issued on May 3, representing a bid price of €100.1798 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 August 16 and November 15 respectively.