ECB monetary operations

On August 5, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on August 6 and attracted bids from euro area eligible counterparties of €1,762 million, €3,713 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%, in accordance with current ECB policy.

On August 7, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $151.30 million, which were allotted in full at a fixed rate of 5.56%.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day bills for settlement value August 8, maturing on November 7.

Bids of €128.06 million were submitted for the 91-day bills, with the Treasury accepting €15.29 million. Since €35.88 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €20.59 million, standing at €480.45 million.

The yield from the 91-day bill auction was 3.046%, decreasing by 19.10 basis points from bids with a similar tenor issued on August 1, representing a bid price of €99.2359 per €100 nominal.

During this week, secondary market turnover in Malta Government Treasury bills amounted to €20,000, all executed on the on-exchange market of the Malta Stock Exchange.

Yesterday, August 12, the Treasury invited tenders for 92-day bills maturing on November 14.

The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.