ECB monetary operations
On September 30, the European Central Bank (ECB) announced the seven-day main refinancing operations (MRO). The operation was conducted on October 1 and attracted bids from euro area eligible counterparties of €8,146 million, €4,302 million less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 3.65%, in accordance with current ECB policy.
On October 2, 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 $154 million, which were allotted in full at a fixed rate of 5.07%.
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 October 3, maturing on January 2 and April 3, 2025, respectively. Bids of €67.58 million were submitted for the 91-day bills, with the Treasury accepting €16.81 million, while bids of €29.86 million were submitted for the 182-day bills, with the Treasury accepting €4.66 million. Since €34.87 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €13.40 million, standing at €358.34 million.
The yield from the 91-day bill auction was 2.746%, increasing by 11.10 basis points from bids with a similar tenor issued on September 26, 2024, representing a bid price of €99.3107 per €100 nominal. The yield from the 182-day bill auction was 2.534%, increasing by 7.0 basis points from bids with a similar tenor also issued on September 26, representing a bid price of €98.7351 per €100 nominal.
During this week, secondary market turnover in Malta Government Treasury bills amounted to €250,000, all executed on the On-exchange market of the Malta Stock Exchange.
Today, October 8, the Treasury will invite tenders for 91-day and 182-day bills maturing on January 9 and April 10, 2025, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.