ECB monetary operations
On January 24, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on January 25 and attracted bids from euro area eligible counterparties of €198 million, €239 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 26, 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 €10 million from euro area eligible counterparties.
Also on January 26, 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 $212.50 million, which was allotted in full at a fixed rate of 0.34 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 182-day and 364-day bills for settlement value January 27, maturing on July 28, 2022, and January 26, 2023, respectively. Bids of €58.70 million were submitted for the 182-day bills, with the Treasury accepting €33.70 million, while bids of €50 million were submitted for the 364-day bills, with the Treasury accepting €6 million. Since €40 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €0.30 million, standing at €630.52 million.
The yield from the 182-day bill auction was -0.380 per cent, increasing by 0.2 basis point from bids with a similar tenor issued on January 20, representing a bid price of €100.1925 per €100 nominal. The yield from the 364-day bill auction was -0.375 per cent, increasing by 3.3 basis points from bids with a similar tenor issued on August 5, 2021, representing a bid price of €100.3806 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 May 5 and November 3, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.