Money market report for the week ended August 1, 2025
Information on ECB monetary operations and the domestic Treasury bill market
ECB monetary operations
On July 28, the European Central Bank announced the seven-day main refinancing operation. The operation was conducted on July 29, and attracted bids from euro area eligible counterparties of €10,198.50 million, €3,385.00 million more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 2.15%, in accordance with current ECB policy.
Also on July 29, the ECB conducted the three-month, longer-term refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average MRO rate over the life of the operation. The operation attracted bids of €3,690 million from euro area eligible counterparties.
On July 30, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $49.50 million, which were allotted in full at a fixed rate of 4.57%.
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 July 31, maturing on October 30 and January 29, 2026, respectively. Bids of €31.82 million were submitted for the 91-day bills, with the Treasury accepting €16.82 million, while bids of €27.24 million were submitted for the 182-day bills, with the Treasury accepting €6.64 million.
Since €45.27 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €21.80 million, standing at €621.50 million.
The yield from the 91-day bill auction was 1.999%, increasing by 0.70 basis point from bids with a similar tenor issued on July 24, representing a bid price of €99.4972 per €100 nominal. The yield from the 182-day bill auction was 1.955%, decreasing by 2.20 basis point from bids with a similar tenor also issued on July 24, representing a bid price of €99.0213 per €100 nominal.
During the week, secondary market turnover in Malta Government Treasury bills amounted to €70,000, all executed on the On-exchange market of the Malta Stock Exchange.
Today, the Treasury will invite tenders for 91-day and 182-day bills maturing on November 6 and February 5, 2026, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.