ECB monetary operations
On July 29, the European Central Bank (ECB) announced the seven-day main refinancing operations. The operation was conducted on July 30, and attracted bids from euro area eligible counterparties of €5,475 million, €1,083 million more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 4.25%, in accordance with current ECB policy.
Also on July 30, 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 €1,881 million from euro area eligible counterparties.
On July 31, the ECB conducted a six-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $148.90 million, which were allotted in full at a fixed rate of 5.57%.
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 August 1, maturing on October 31 and January 30, 2025, respectively.
Bids of €99.26 million were submitted for the 91-day bills, with the Treasury accepting €8.36 million, while bids of €37.53 million were submitted for the 182-day bills, with the Treasury accepting €3.37 million. Since €50.47 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €38.74 million, standing at €501.04 million.
The yield from the 91-day bill auction was 3.237%, decreasing by 12.80 basis points from bids with a similar tenor issued on July 25, representing a bid price of €99.1884 per €100 nominal.
The yield from the 182-day bill auction was 3.315%, increasing by 5.50 basis points from bids with a similar tenor also issued on July 25, representing a bid price of €98.4374 per €100 nominal.
During this week, secondary market turnover in Malta Government Treasury bills amounted to €150,000, all executed on the On-exchange market of the Malta Stock Exchange.
Today, the Treasury will invite tenders for 91-day bills maturing on November 7.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.