ECB monetary operations

On May 6, the European Central Bank announced a seven-day main refinancing operation (MRO). The operation was conducted on May 7 and attracted bids from euro area eligible counterparties of €1,694 million, €259 million less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 4.50%, in accordance with current ECB policy.

On May 8, 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 $128.60 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 May 9, maturing on August 8, and November 7, respectively.

Bids of €107.74 million were submitted for the 91-day bills, with the Treasury accepting €28.37 million, while bids of €49.61 million were submitted for the 182-day bills, with the Treasury accepting €8.23 million. Since €19.67 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €16.93 million, standing at €514.83 million.

The yield from the 91-day bill auction was 3.613 per cent, increasing by four  basis points from bids with a similar tenor issued on May 2, representing a bid price of €99.0950 per €100 nominal.

The yield from the 182-day bill auction was 3.294%, increasing by 11.30 basis points from bids with a similar tenor also issued on May 2, 2024, representing a bid price of €98.3620 per €100 nominal.

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

Today, May 14, the Treasury will invite tenders for 90-day and 182-day bills maturing on August 14 and November 14, respectively.

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