ECB monetary operations
On November 25, the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was conducted on November 26, and attracted bids from euro area eligible counterparties of €10,443.50 million, €60.50 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.
Also on November 26, 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 €4,305 million from euro area eligible counterparties.
On November 27, 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 $99.10 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 182-day bills for settlement value November 28, maturing on February 27, and May 29, 2025, respectively.
Bids of €72.29 million were submitted for the 91-day bills, with the Treasury accepting €31.94 million, while bids of €4.15 million were submitted for the 182-day bills, with the Treasury accepting €1.94 million. Since €24.23 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €9.65 million, standing at €514.25 million.
The yield from the 91-day bill auction was 3.026%, decreasing by 3.30 basis points from bids with a similar tenor issued on November 21, representing a bid price of €99.2409 per €100 nominal. The yield from the 182-day bill auction was 2.576%, decreasing by 18.90 basis points from bids with a similar tenor issued on November 14, representing a bid price of €98.7144 per €100 nominal.
During this week, secondary market turnover in Malta Government Treasury bills amounted to €852,000, all executed on the on-exchange market of the Malta Stock Exchange.
Today, December 3, the Treasury will invite tenders for 91-day and 182-day bills maturing on March 6 and June 5, 2025, respectively.
This report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.