ECB monetary operations
On February 3, the European Central Bank announced the seven-day main refinancing operations (MRO).
The operation was conducted on February 4, and attracted bids from euro area eligible counterparties of €6,950.00 million, €4,909.00 million less 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 5, 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 $64.80 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 6, maturing on May 8, and August 7, respectively.
Bids of €99.89 million were submitted for the 91-day bills, with the Treasury accepting €20.15 million, while bids of €35.99 million were submitted for the 182-day bills, with the Treasury accepting €8.14 million. Since €49.76 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €21.47 million, standing at €753.15 million.
The yield from the 91-day bill auction was 2.648%, decreasing by 22.70 basis points from bids with a similar tenor issued on January 30, representing a bid price of €99.3351 per €100 nominal.
The yield from the 182-day bill auction was 2.524%, decreasing by 7.10 basis points from bids with a similar tenor also issued on January 30, representing a bid price of €98.7401 per €100 nominal.
During the week, secondary market turnover in Malta Government Treasury bills amounted to €230,000, all executed on the on-exchange market of the Malta Stock Exchange.
Today, February 11, the Treasury will invite tenders for 91-day and 182-day bills maturing on May 15 and August 14, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.