ECB monetary operations

On January 10, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on January 11 and attracted bids from euro area eligible counterparties of €379 million, €51 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 January 12, 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 $215 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 273-day bills for settlement value January 13, maturing on April 14 and October 13, respectively. Bids of €68.70 million were submitted for the 91-day bills, with the Treasury accepting €33.70 million, while bids of €61.70 million were submitted for the 273-day bills, with the Treasury accepting €3 million. Since €27 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €9.70 million, standing at €626.62 million.

The yield from the 91-day bill auction was -0.408 per cent, decreasing by 0.1 basis point from bids with a similar tenor issued on January 6, representing a bid price of €100.1032 per €100 nominal.

The yield from the 273-day bill auction was -0.397 per cent, increasing by 0.2 basis point from bids with a similar tenor issued on November 4, 2021, representing a bid price of €100.3020 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 April 21 and July 21 respectively.

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