ECB monetary operations

On February 6, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on February 7 and attracted bids from euro area eligible counterparties of €0.98 billion, €0.19 billion more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of three per cent, in accordance with current ECB policy.

On February 8, 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 $0.39 billion, which was allotted in full at a fixed rate of 4.83 per cent.

During the week under review, participants in the TLTRO-III operations 3 to 10 had the option of terminating or reducing their outstanding amount before maturity. Accordingly, on February 22, a total of €36.60 billion will be repaid.

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 February 9, maturing on May 11 and August 10, respectively. 

Bids of €201.50 million were submitted for the 91-day bills, with the Treasury accepting €49.45 million, while bids of €27.68 million were submitted for the 182-day bills, with the Treasury accepting €22.68 million. Since €59.07 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €13.06 million, standing at €898.74 million.

The yield from the 91-day bill auction was 2.655 per cent, increasing by 9.40 basis points from bids with a similar tenor issued on February 2, representing a bid price of €99.3333 per €100 nominal. The yield from the 182-day bill auction was 2.994 per cent, increasing by 22.40 basis points from bids with a similar tenor also issued on February 2, representing a bid price of €98.5089 per €100 nominal.

During this week, there was no trading on the Malta Stock Exchange. Today, February 14, the Treasury will invite tenders for 91-day and 364-day bills maturing on May 18, 2023, and February 15, 2024, respectively.

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