ECB monetary operations
On April 25, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on April 26 and attracted bids from euro area eligible counterparties of €720.50 million, €246.50 million more 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 27, 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 €57.50 million from euro area eligible counterparties.
Also on April 27, 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 $225 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 28, maturing on July 28 and October 27, respectively. Bids of €51 million were submitted for the 91-day bills, with the Treasury accepting €20 million, while bids of €57 million were submitted for the 182-day bills, with the Treasury accepting €35 million. Since €43 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €12 million, standing at €809.40 million.
The yield from the 91-day bill auction was -0.294 per cent, increasing by 0.2 basis point from bids with a similar tenor issued on April 21, representing a bid price of €100.0744 per €100 nominal. The yield from the 182-day bill auction was -0.275 per cent, increasing by 1.1 basis points from bids with a similar tenor also issued on April 21, representing a bid price of €100.1392 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 273-day bills maturing on August 4, 2022, and February 2, 2023, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.