ECB monetary operations
On August 22, the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was conducted on August 23 and attracted bids from euro area eligible counterparties of €743.50 million, €79.50 million less 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 24, 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 $168.70 million, which was allotted in full at a fixed rate of 2.58 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 25, maturing on November 24, 2022 and February 23, 2023, respectively.
Bids of €76.50 million were submitted for the 91-day bills, with the Treasury accepting €26.50 million, while bids of €52.50 million were submitted for the 182-day bills, with the Treasury accepting €31.50 million. Since €51.50 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €6.50 million, standing at €934.50 million.
The yield from the 91-day bill auction was 0.407 per cent, increasing by 4.4 basis points from bids with a similar tenor issued on August 18, representing a bid price of €99.8972 per €100 nominal. The yield from the 182-day bill auction was 0.847 per cent, increasing by 2.3 basis points from bids with a similar tenor also issued on August 18, representing a bid price of €99.5736 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 December 1, 2022 and March 2, 2023, respectively.