ECB monetary operations
On September 23, the European Central Bank (ECB) announced the seven-day main refinancing operations (MRO). The operation was conducted on September 24 and attracted bids from euro area eligible counterparties of €12,448 million, €10,153.50 million more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 3.65%, in accordance with current ECB policy.
Also on September 24, 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 €6,823.00 million from euro area eligible counterparties.
On September 25, 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 $157 million, which were allotted in full at a fixed rate of 5.08%.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 92-day and 182-day bills for settlement value September 26, maturing on December 27, 2024, and March 27, 2025, respectively.
Bids of €49.83 million were submitted for the 92-day bills, with the Treasury accepting €19.61 million, while bids of €9.77 million were submitted for the 182-day bills, with the Treasury accepting €9.72 million. Since €38.43 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €9.10 million, standing at €371.74 million.
The yield from the 92-day bill auction was 2.635%, increasing by 9.90 basis points from bids with a similar tenor issued on September 19, representing a bid price of €99.3311 per €100 nominal. The yield from the 182-day bill auction was 2.464%, increasing by 9.2 basis points from bids with a similar tenor also issued on September 19, representing a bid price of €98.7696 per €100 nominal.
During this week, secondary market turnover in Malta Government Treasury bills amounted to €40,000, all executed on the On-exchange market of the Malta Stock Exchange.
Today, October 1, the Treasury will invite tenders for 91-day and 182-day bills maturing on January 2 and April 3, 2025, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.