ECB monetary operations
On September 2, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on September 3 and attracted bids from euro area eligible counterparties of €1,829 million, €2,187 million less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 4.25%, in accordance with current ECB policy.
On September 4, 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 $136.30 million, which were allotted in full at a fixed rate of 5.58%.
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 September 5, maturing on December 5, 2024, and March 6, 2025, respectively.
Bids of €80.24 million were submitted for the 91-day bills, with the Treasury accepting €7.69 million, while bids of €14.06 million were submitted for the 182-day bills, with the Treasury accepting €2.60 million. Since €26.95 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €16.66 million, standing at €411.58 million.
The yield from the 91-day bill auction was 2.787%, decreasing by 11.10 basis points from bids with a similar tenor issued on August 29, representing a bid price of €99.3004 per €100 nominal. The yield from the 182-day bill auction was 2.686, decreasing by 14 basis points from bids with a similar tenor also issued on August 29, representing a bid price of €98.6603 per €100 nominal.
During this week, secondary market turnover in Malta Government Treasury bills amounted to €100,000, all executed on the On-exchange market of the Malta Stock Exchange.
Today, the Treasury will invite tenders for 91-day and 182-day bills maturing on December 12, 2024, and March 13, 2025, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.