ECB monetary operations

On December 27, the European Central Bank announced the nine-day Main Refinancing Operation (MRO). The operation was conducted on December 30 and attracted bids from euro area eligible counterparties of €16,979 million, €8,099 million more 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. 

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 2, maturing on April 3 and July 3, respectively. 

Bids of €43.10 million were submitted for the 91-day bills, with the Treasury accepting €43.05 million, while bids of €1.65 million were submitted for the 182-day bills, with the Treasury accepting all of them. Since €30.95 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €13.75 million, standing at €708.55 million.

The yield from the 91-day bill auction was 3.075%, increasing by 6.30 basis points from bids with a similar tenor issued on December 27, representing a bid price of €99.2287 per €100 nominal. 

The yield from the 182-day bill auction was 2.618%, increasing by 1.60 basis points from bids with a similar tenor also issued on December 27, representing a bid price of €98.6937 per €100 nominal.

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

Today, January 7, the Treasury will invite tenders for 91-day and 182-day bills maturing on April 10 and July 10, respectively. 

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