ECB monetary operations
On August 8, the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO).
The operation was conducted on August 9 and attracted bids from euro area eligible counterparties of €907 million, €43 million more than the previous week.
The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 0.50 per cent, in accordance with current ECB policy.
On August 10, 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 $188.50 million, which was allotted in full at a fixed rate of 2.60 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 August 11, maturing on November 10, 2022, and February 9, 2023, respectively.
Bids of €79 million were submitted for the 91-day bills, with the Treasury accepting €41 million, while bids of €54.50 million were submitted for the 182-day bills, with the Treasury accepting €38.50 million. Since €29.80 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €49.70 million, standing at €922.30 million.
The yield from the 91-day bill auction was 0.349 per cent, increasing by 5.4 basis points from bids with a similar tenor issued on August 4, representing a bid price of €99.9119 per €100 nominal. The yield from the 182-day bill auction was 0.798 per cent, increasing by 13.4 basis points from bids with a similar tenor also issued on August 4, representing a bid price of €99.5982 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 November 17, 2022, and February 16, 2023, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.