ECB monetary operations

On April 6, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on April 11 and attracted bids from euro area eligible counterparties of €1,621.50 million, €454.50 million more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 3.50 per cent, in accordance with current ECB policy.

On a daily basis, the ECB conducted the seven-day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. The four operations attracted bids of a total of $478.70 million, at the rate of 5.07 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182-day bills for settlement value April 13, maturing on July 13 and October 12, respectively. 

Bids of €215.33 million were submitted for the 91-day bills, with the Treasury accepting €34.83 million, while bids of €29.34 million were submitted for the 182-day bills, with the Treasury accepting €23.38 million. Since €59.15 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €0.94 million, standing at €785.85 million.

The yield from the 91-day bill auction was 2.953 per cent, increasing by 4.80 basis points from bids with a similar tenor issued on April 6, representing a bid price of €99.2591 per €100 nominal. 

The yield from the 182-day bill auction was 2.944 per cent, increasing by 3.40 basis points from bids with a similar tenor also issued on April 6, representing a bid price of €98.5335 per €100 nominal.

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

Today, April 18, the Treasury will invite tenders for 91-day and 364-day bills maturing on July 20, 2023, and April 18, 2024, respectively.

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