ECB monetary operations
On January 23, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on January 24, and attracted bids from euro area eligible counterparties of €1.24 billion, €0.39 billion more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 2.50 per cent, in accordance with current ECB policy.
On January 25, the ECB conducted the three-month, longer-term refinancing operation to be settled as a fixed-rate tender procedure with full allotment, with the rate fixed at the average MRO rate over the life of the operation. The operation attracted bids of €0.78 billion from euro area eligible counterparties. Also on January 25, 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 $0.43 billion, which was allotted in full at a fixed rate of 4.58 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 January 26, maturing on April 27, and July 27, respectively. Bids of €211.40 million were submitted for the 91-day bills, with the Treasury accepting €44.40 million, while bids of €21.23 million were submitted for the 182-day bills, with the Treasury accepting €14.90 million. Since €63.70 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €4.40 million, standing at €869.15 million.
The yield from the 91-day bill auction was 2.477 per cent, increasing by 4.10 basis points from bids with a similar tenor issued on January 19, representing a bid price of €99.3778 per €100 nominal. The yield from the 182-day bill auction was 2.672 per cent, decreasing by 0.90 basis point from bids with a similar tenor also issued on January 19, representing a bid price of €98.6672 per €100 nominal.
During this week, secondary market turnover in Malta Government Treasury bills amounted to €2 million, all executed on the off-exchange market of the Malta Stock Exchange.
Today, January 31, the Treasury will invite tenders for 91-day and 182-day bills maturing on May 4, and August 3, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.