ECB monetary operations

On June 10, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on June 11 and attracted bids from euro area eligible counterparties of €2,178 million, €149 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 June 12, 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 $119.60 million, which were allotted in full at a fixed rate of 5.58%.

During the week under review, participants in the third series of targeted longer-term refinancing operations 9 and 10 had the option of terminating or reducing their outstanding amount before maturity. Accordingly, on June 26, a total of €17,105.57 million will be repaid.

Domestic Treasury bills market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182-day bills for settlement value June 13, maturing on September 12 and December 12, respectively.

Bids of €113.32 million were submitted for the 91-day bills, with the Treasury accepting €30.97 million, while bids of €38.97 million were submitted for the 182-day bills, with the Treasury accepting €4.77 million. Since €41.46 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €5.72 million, standing at €541.98 million.

The yield from the 91-day bill auction was 3.562%, increasing by 0.40 basis point from bids with a similar tenor issued on June 6, representing a bid price of €99.1076 per €100 nominal. The yield from the 182-day bill auction was 2.980%, decreasing by 1.80 basis points from bids with a similar tenor also issued on June 6, representing a bid price of €98.5158 per €100 nominal.

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

Today, June 18, the Treasury will invite tenders for 91-day and 182-day bills maturing on September 19 and December 19, respectively.

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