ECB monetary operations
On November 18, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on November 19 and attracted bids from euro area eligible counterparties of €10,383 million, €1,195 million more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 3.40%, in accordance with current ECB policy.
On November 20, the ECB conducted an eight-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $127.10 million, which were allotted in full at a fixed rate of 4.83%.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 364-day bills for settlement value November 21, maturing on February 20, and November 20, 2025, respectively.
Bids of €104.15 million were submitted for the 91-day bills, with the Treasury accepting €52.54 million, while bids of €45.62 million were submitted for the 364-day bills, with the Treasury accepting €6.15 million. Since €27.27 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €31.43 million, standing at €504.60 million.
The yield from the 91-day bill auction was 3.059%, decreasing by 7.10 basis points from bids with a similar tenor issued on November 14, representing a bid price of €99.2327 per €100 nominal.
The yield from the 364-day bill auction was 2.665%, decreasing by 84.10 basis points from bids with a similar tenor issued on October 19, 2023, representing a bid price of €97.3761 per €100 nominal.
During this week, secondary market turnover in Malta Government Treasury bills amounted to €454,000, all executed on the On-exchange market of the Malta Stock Exchange.
Today, November 26, the Treasury will invite tenders for 91-day and 182-day bills maturing on February 27, and May 29, 2025, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.