ECB monetary operations

On July 1, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on July 2 and attracted bids from euro area eligible counterparties of €6,704 million, €4,374 million less than the previous week.

The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 4.25%, in accordance with current ECB policy.

On July 3, the ECB conducted a six-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $121.60 million, which were allotted in full at a fixed rate of 5.58%.

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 July 4, maturing on October 3 and January 2, 2025, respectively.

Bids of €114.42 million were submitted for the 91-day bills, with the Treasury accepting €34.87 million, while bids of €44.15 million were submitted for the 182-day bills, with the Treasury accepting €14.15 million. Since €16.03 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €32.99 million, standing at €581.26 million.

The yield from the 91-day bill auction was 3.554%, decreasing by 1.00 basis point from bids with a similar tenor issued on June 27, representing a bid price of €99.1096 per €100 nominal.

The yield from the 182-day bill auction was 3.551%, increasing by 18.20 basis points from bids with a similar tenor also issued on June 27, representing a bid price of €98.2364 per €100 nominal.

During this week, secondary market turnover in Malta Government Treasury bills amounted to €201,000, all executed on the on-exchange market of the Malta Stock Exchange.

Today, July 9, the Treasury will invite tenders for 91-day and 182-day bills maturing on October 10 and January 9, 2025, respectively.

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

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