ECB monetary operations

On December 22, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on December 27  and attracted bids from euro area eligible counterparties of €2.41 billion, €1.13 billion more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 2.50 per cent, in accordance with current ECB policy.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 181-day bills for settlement value

December 29, 2022, maturing on March 30, and June 28, 2023, respectively. Bids of €156.90 million were submitted for the 91-day bills, with the Treasury accepting €41.90 million, while bids of €63.00 million were submitted for the 181-day bills, with the Treasury accepting €22.90 million. Since €75.00 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €10.20 million, standing at €846.70 million.

The yield from the 91-day bill auction was 2.225 per cent, increasing by 6.80 basis points from bids with a similar tenor issued on December 22, representing a bid price of €99.4407 per €100 nominal. The yield from the 181-day bill auction was 2.404 per cent, increasing by 0.6 basis point from bids with a similar tenor issued on December 15, representing a bid price of €98.8058 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 April 6 and July 6, 2023, respectively.

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