ECB monetary operations

On February 5, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on February 6 and attracted bids from euro area eligible counterparties of €4,740 million, €1,637 million less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 4.50 per cent, in accordance with current ECB policy.

On February 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 $222 million, which were allotted in full at a fixed rate of 5.57 per cent.

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 8, maturing on May 9 and August 8, respectively.

Bids of €81.85 million were submitted for the 91-day bills, with the Treasury accepting €19.67 million, while bids of €23.88 million were submitted for the 182-day bills, with the Treasury accepting €3.92 million. Since €47.48 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €23.89 million, standing at €692.93 million.

The yield from the 91-day bill auction was 3.457 per cent, decreasing by 5.10 basis points from bids with a similar tenor issued on February 1, representing a bid price of €99.1337 per €100 nominal. The yield from the 182-day bill auction was 3.382 per cent, decreasing by 7.80 basis points from bids with a similar tenor also issued on February 1, 2024, representing a bid price of €98.3190 per €100 nominal.

During this week, there was no trading on the Malta Stock Exchange.

Today, February 13, the Treasury will invite tenders for 91-day and 181-day bills maturing on May 16 and August 14, 2024, respectively.

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