ECB monetary operations

On May 8, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on May 9 and attracted bids from euro area eligible counterparties of €1,327 million, €151.50 million more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 3.75 per cent, in accordance with current ECB policy.

On May 10, the ECB conducted the eight-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $409.50 million, which was allotted in full at a fixed rate of 5.32 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 273-day bills for settlement value May 11, maturing on August 10, 2023, and February 8, 2024, respectively.

Bids of €237.93 million were submitted for the 91-day bills, with the Treasury accepting €45.56 million, while bids of €24.80 million were submitted for the 273-day bills, with the Treasury accepting €19.70 million. Since €49.45 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €15.81 million, standing at €804.26 million.

The yield from the 91-day bill auction was 3.156 per cent, increasing by 3.50 basis points from bids with a similar tenor issued on May 4, representing a bid price of €99.2085 per €100 nominal.

The yield from the 273-day bill auction was 3.179 per cent, increasing by 110.80 basis points from bids with a similar tenor issued on October 27, 2022, representing a bid price of €97.6460 per €100 nominal.

During the 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 August 17 and November 16, respectively.

This report was prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.