ECB monetary operations
On May 29, the European Central Bank (ECB) announced the seven-day main refinancing operations (MRO). The operation was conducted on May 30 and
attracted bids from euro area eligible counterparties of €2,548.50 million, €546 million more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 3.75 per cent, in accordance with current ECB policy.
On May 31, 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 €789 million from euro area eligible counterparties.
Also on May 31, 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 $343.00 million, which was allotted in full at a fixed rate of 5.33 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 June 1, maturing on August 31, and November 30, respectively.
Bids of €233.73 million were submitted for the 91-day bills, with the Treasury accepting €34.55 million, while bids of €36.84 million were submitted for the 182-day bills, with the Treasury accepting €24.64 million.
Since €49.65 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €9.54 million, standing at €850.55 million.
The yield from the 91-day bill auction was 3.160 per cent, decreasing by 0.70 basis point from bids with a similar tenor issued on May 25, representing a bid price of €99.2076 per €100 nominal. The yield from the 182-day bill auction was 3.200 per cent, increasing by 2.00 basis points from
bids with a similar tenor also issued on May 25, representing a bid price of €98.4094 per €100 nominal.
During the week, there was no trading on the Malta Stock Exchange.
Yesterday, June 5, the Treasury invited tenders for 91-day and 182-day bills maturing on September 7 and December 7, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.