ECB monetary operations

On January 13, the European Central Bank announced the seven-day Main Refinancing Operation (MRO).

The operation was conducted on January 14 and attracted bids from euro area eligible counterparties of €8,039 million, €1,945 million less than the previous week.

The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 3.15%, in accordance with current ECB policy. 

On January 15, 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 $102.80 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 January 16, maturing on April 17 and July 17, respectively. 

Bids of €100.33 million were submitted for the 91-day bills, with the Treasury accepting €22.47 million, while bids of €32.00 million were submitted for the 182-day bills, with the Treasury accepting €12.49 million. 

Since €18.40 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €16.56 million, standing at €758.95 million.

The yield from the 91-day bill auction was 2.966%, decreasing by 5.60 basis points from bids with a similar tenor issued on January 9, 2025, representing a bid price of €99.2558 per €100 nominal.

The yield from the 182-day bill auction was 2.633%, decreasing by 0.50 basis points from bids with a similar tenor also issued on January 9, representing a bid price of €98.6864 per €100 nominal.

During the week, secondary market turnover in Malta Government Treasury bills amounted to €110,000, all executed on the On-exchange market of the Malta Stock Exchange.

Today, January 21, the Treasury will invite tenders for 91-day and 182-day bills maturing on April 24 and July 24, respectively. 

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