ECB monetary operations
On December 20, the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was conducted on December 21 and attracted bids from euro area eligible counterparties of €225 million, €128 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 December 22, 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 €18 million from euro area eligible counterparties.
Also, on December 22, the ECB conducted a 14-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $939.50 million, which was allotted in full at a fixed rate of 0.33 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 December 23, maturing on March 24, and June 23, 2022, respectively. Bids of €48 million were submitted for the 91-day bills, with the Treasury accepting €20 million.
Bids of €48 million were also submitted for the 182-day bills, with the Treasury accepting €33 million. Since €41 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €12 million, standing at €637.22 million.
The yield from the 91-day bill auction was -0.410 per cent, increasing by 0.7 basis point from bids with a similar tenor issued on December 16, representing a bid price of €100.1037 per €100 nominal. The yield from the 182-day bill auction was -0.382 per cent, increasing by 5.5 basis points from bids with a similar tenor issued on December 9, representing a bid price of €100.1935 per €100 nominal.
During this week, there was no trading on the Malta Stock Exchange.
Today, the Treasury will invite tenders for 90-day bills maturing on March 30, 2022.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.