ECB monetary operations

On May 27, the European Central Bank (ECB) announced a seven-day main refinancing operation (MRO). The operation was conducted on May 28 and attracted bids from euro area eligible counterparties of €4,902 million, €3,575 million more 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.

Also on May 28, 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 €1,170 million from euro area eligible counterparties.

On May 29, 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 $128.60 million, which were allotted in full at a fixed rate of 5.59%.

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 30, maturing on August 29 and November 28, respectively.

Bids of €107.92 million were submitted for the 91-day bills, with the Treasury accepting €28.93 million, while bids of €35.15 million were submitted for the 182-day bills, with the Treasury accepting €5.16 million. Since €6.49 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €27.60 million, standing at €573.23 million.

The yield from the 91-day bill auction was 3.555%, decreasing by 4.50 basis point from bids with a similar tenor issued on May 23, representing a bid price of €99.1094 per €100 nominal. The yield from the 182-day bill auction was 3.081%, decreasing by 10.20 basis points from bids with a similar tenor also issued on May 23, representing a bid price of €98.4663 per €100 nominal.

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

Today, June 4, the Treasury will invite tenders for 91-day and 182-day bills maturing on September 5 and December 5, respectively.

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