ECB monetary operations
On February 17, the European Central Bank (ECB) announced the seven-day main refinancing operations (MRO). The operation was conducted on February 18 and attracted bids from euro area eligible counterparties of €8,719.50 million, €2,545.50 million more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 2.90%, in accordance with current ECB policy.
On February 19, 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 $84.40 million, which were allotted in full at a fixed rate of 4.58%.
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 20, maturing on May 22 and August 21, respectively.
Bids of €68.74 million were submitted for the 91-day bills, with the Treasury accepting €24.76 million, while bids of €20.73 million were submitted for the 182-day bills, with the Treasury accepting €4.54 million. Since €57.95 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €28.66 million, standing at €706.82 million.
The yield from the 91-day bill auction was 2.608%, decreasing by 1.00 basis points from bids with a similar tenor issued on February 13, representing a bid price of €99.3451 per €100 nominal.
The yield from the 182-day bill auction was 2.434%, decreasing by 4.20 basis points from bids with a similar tenor also issued on February 13, representing a bid price of €98.7844 per €100 nominal.
During the week, secondary market turnover in Malta Government Treasury bills amounted to €566,000, all executed on the on-exchange market of the Malta Stock Exchange.
Today, February 25, the Treasury will invite tenders for 91-day and 182-day bills maturing on May 29 and August 28, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.