ECB monetary operations
On August 1, the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was conducted on August 2 and attracted bids from euro area eligible counterparties of €864 million, €213 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 3, 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 $191.20 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 4, maturing on November 3, 2022, and February 2, 2023, respectively. Bids of €84 million were submitted for the 91-day bills, with the Treasury accepting €44 million, while bids of €56.50 million were submitted for the 182-day bills, with the Treasury accepting €10.50 million. Since €53.50 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €1 million, standing at €872.60 million.
The yield from the 91-day bill auction was 0.295 per cent, increasing by 1.5 basis points from bids with a similar tenor issued on July 28, representing a bid price of €99.9255 per €100 nominal. The yield from the 182-day bill auction was 0.664 per cent, decreasing by 9.2 basis points from bids with a similar tenor also issued on July 28, representing a bid price of €99.6654 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 10, 2022, and February 9, 2023, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.