ECB monetary operations
On August 11, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on August 14 and attracted bids from euro area eligible counterparties of €5,152.40 million, €538.10 million less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 4.25 per cent, in accordance with current ECB policy.
On August 16, 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 $229 million, which was allotted in full at a fixed rate of 5.58 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 August 17, maturing on November 16, 2023, and May 16, 2024, respectively.
Bids of €236.28 million were submitted for the 91-day bills, with the Treasury accepting €14.33 million, while bids of €36.56 million were submitted for the 273-day bills, with the Treasury accepting €5.48 million. Since €44.47 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €24.66 million, standing at €719 million.
The yield from the 91-day bill auction was 2.671 per cent, decreasing by 10.70 basis points from bids with a similar tenor issued on August 10, representing a bid price of €99.3294 per €100 nominal. The yield from the 273-day bill auction was 2.702 per cent, decreasing by 46.60 basis points from bids with a similar tenor issued on July 27, 2023, representing a bid price of €97.9921 per €100 nominal.
During the week, there was no trading on the Malta Stock Exchange.
On August 22, the Treasury will invite tenders for 91-day and 182-day bills maturing on November 23, 2023, and February 22, 2024, respectively.
The report was prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.