ECB monetary operations

On May 13, the European Central Bank announced a seven-day main refinancing operation (MRO). The operation was conducted on May 14 and attracted bids from euro area eligible counterparties of €1,207 million, €487 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 per cent, in accordance with current ECB policy.

On May 15, 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 $122 million, which were allotted in full at a fixed rate of 5.58 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 90-day and 182-day bills for settlement value May 16, maturing on August 14 and November 14, respectively.

Bids of €107.87 million were submitted for the 90-day bills, with the Treasury accepting €30.60 million, while bids of €40.89 million were submitted for the 182-day bills, with the Treasury accepting €6.23 million. Since €20.23 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €16.60 million, standing at €531.43 million.

The yield from the 90-day bill auction was 3.597 per cent, decreasing by 1.60 basis points from bids with a similar tenor issued on May 9, representing a bid price of €99.1088 per €100 nominal. The yield from the 182-day bill auction was 3.287 per cent, decreasing by 0.70 basis points from bids with a similar tenor also issued on May 9, 2024, representing a bid price of €98.3654 per €100 nominal.

During this week, secondary market turnover in Malta Government Treasury bills amounted to €120,000, all executed on the on-exchange market of the Malta Stock Exchange.

Today, May 21, the Treasury will invite tenders for 91-day and 182-day bills maturing on August 22 and November 21, respectively.

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