ECB monetary operations

On January 17, the European Central Bank (ECB) announced the seven-day main refinancing operations (MRO). The operation was conducted on January 18 and attracted bids from euro area eligible counterparties of €437 million, €58 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 January 19, 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 182-day bills for settlement value January 20, maturing on April 21 and July 21 respectively. Bids of €56.60 million were submitted for the 91-day bills, with the Treasury accepting €36.60 million, while bids of €47.60 million were submitted for the 182-day bills, with the Treasury accepting €3.60 million.

Since €36 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €4.20 million, standing at €630.82 million.

The yield from the 91-day bill auction was -0.407 per cent, increasing by 0.1 basis point from bids with a similar tenor issued on January 13, representing a bid price of €100.1030 per €100 nominal. The yield from the 182-day bill auction was -0.382 per cent, unchanged from bids with a similar tenor issued on January 6, representing a bid price of €100.1935 per €100 nominal.

During the week, there was no trading on the Malta Stock Exchange. Today, the Treasury will invite tenders for 182-day and 364-day bills maturing on July 28, 2022, and January 26, 2023, respectively.

This report was prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.