ECB monetary operations

On October 3, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on October 4 and attracted bids from euro area eligible counterparties of €3.67 billion, €0.82 billion less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 1.25 per cent, in accordance with current ECB policy.

On October 5, the ECB conducted the seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.21 billion, which was allotted in full at a fixed rate of 3.33 per cent.

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 6, maturing on January 5, and April 6, 2023, respectively.

Bids of €132.30 million were submitted for the 91-day bills, with the Treasury accepting €45 million, while bids of €10.75 million were submitted for the 182-day bills, with the Treasury accepting all. Since €61.50 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €5.75 million, standing at €980.75 million.

The yield from the 91-day bill auction was 0.923 per cent, decreasing by 2.30 basis points from bids with a similar tenor issued on September 29, representing a bid price of €99.7672 per €100 nominal. The yield from the 182-day bill auction was 1.777 per cent, increasing by 17.00 basis points from bids with a similar tenor also issued on September 29, representing a bid price of €99.1096 per €100 nominal.

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

Today, October 11, the Treasury will invite tenders for 91-day and 182-day bills maturing on January 12 and April 13, 2023, respectively.

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