ECB monetary operations

On January 2, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on January 3 and attracted bids from euro area eligible counterparties of €1.12 billion, €1.28 billion less 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 4, 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 $0.19 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 181-day bills for settlement value January 5, maturing on April 6, and July 6, respectively.

Bids of €199.96 million were submitted for the 91-day bills, with the Treasury accepting €39.96 million, while bids of €17.15 million were submitted for the 181-day bills, with the Treasury accepting €12.15 million. Since €63 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €10.89 million, standing at €835.80 million.

The yield from the 91-day bill auction was 2.354 per cent, increasing by 12.90 basis points from bids with a similar tenor issued on December 29, representing a bid price of €99.4085 per €100 nominal. The yield from the 181-day bill auction was 2.504 per cent, increasing by 10.00 basis points from bids with a similar tenor also issued on December 29, representing a bid price of €98.7499 per €100 nominal.

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

Today, the Treasury will invite tenders for 91-day and 182-day bills maturing on April 13, and July 13, 2023, respectively.

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