ECB monetary operations

On February 7, the European Central Bank (ECB) announced the seven-day main refinancing operations (MRO). The operation was conducted on February 8 and attracted bids from euro area eligible counterparties of €231 million, €39 million more than 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 February 9, the ECB conducted the seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $210.50 million, which was allotted in full at a fixed rate of 0.34 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 92-day and 183-day bills for settlement value February 9, maturing on May 12 and August 11, respectively. Bids of €50 million were submitted for the 92-day bills, with the Treasury accepting €40 million, while bids of €48.80 million were submitted for the 183-day bills, with the Treasury accepting €8.80 million.

Since €31 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €17.80 million, standing at €651.32 million. The yield from the 92-day bill auction was -0.394 per cent, increasing by 1.5 basis points from bids with a similar tenor issued on February 3, representing a bid price of €100.1008 per €100 nominal.

The yield from the 183-day bill auction was -0.384 per cent, decreasing by 0.4 basis point from bids with a similar tenor issued on January 27, representing a bid price of €100.1956 per €100 nominal.

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

Today, the Treasury will invite tenders for 91-day and 182-day bills maturing on May 19 and August 18, respectively.

The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.