ECB monetary operations

On April 14, the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO).

The operation was conducted on April 19 and attracted bids from euro area eligible counterparties of €474 million, €66 million less than the previous week.

The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of zero per cent, in accordance with current ECB policy.

On April 20, 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 $214 million, which was allotted in full at a fixed rate of 0.58 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 April 21, maturing on July 21, and October 20, respectively.

Bids of €45 million were submitted for the 91-day bills, with the Treasury accepting €40 million, while bids of €45 million were also submitted for the 182-day bills, with the Treasury accepting €15 million. Since €36.60 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €18.40 million, standing at €797.40 million.

The yield from the 91-day bill auction was -0.296 per cent, decreasing by 0.2 basis point from bids with a similar tenor issued on April 14, representing a bid price of €100.0749 per €100 nominal. The yield from the 182-day bill auction was -0.286 per cent, increasing by 3.1 basis points from bids with a similar tenor also issued on April 14, representing a bid price of €100.1448 per €100 nominal. During this week, there was no trading on the Malta Stock Exchange.

Today, the Treasury will invite tenders for 91-day and 182-day bills maturing on July 28 and October 27, respectively.

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