On November 14, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on November 15 and attracted bids from euro area eligible counterparties of €1.63 billion, €0.08 billion more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of two per cent, in accordance with current ECB policy.
On November 16, the ECB conducted the eight-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.20 billion, which was allotted in full at a fixed rate of 4.08 per cent.
During the week under review, participants in the TLTRO-III operations 2 to 10 had the option of terminating or reducing their outstanding amount before maturity. Accordingly, on November 23, a total of €296.29 billion will be repaid.
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 November 17, maturing on February 16 and May 18, 2023, respectively.
Bids of €133.55 million were submitted for the 91-day bills, with the Treasury accepting €26.55 million, while bids of €13.22 million were submitted for the 182-day bills, with the Treasury accepting all bids. Since €41.50 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €1.73 million, standing at €867.88 million.
The yield from the 91-day bill auction was 1.854 per cent, increasing by 24.70 basis points from bids with a similar tenor issued on November 10, representing a bid price of €99.5335 per €100 nominal. The yield from the 182-day bill auction was 2.121 per cent, increasing by 13.90 basis points from bids with a similar tenor issued on November 3, representing a bid price of €98.9391 per €100 nominal.
During this week, there was no trading on the Malta Stock Exchange.
Today, the Treasury will invite tenders for 91-day and 182-day bills maturing on February 23 and May 25, 2023, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.