ECB monetary operations
On May 16, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on May 17 and attracted bids from euro area eligible counterparties of €319 million, €176.40 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 May 18, the ECB conducted the eight-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $208.50 million, which was allotted in full at a fixed rate of 1.08 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 May 19, maturing on August 18 and November 17, respectively.
Bids of €36.50 million and €14 million were submitted for the 91-day and 182-day bills, respectively, with the Treasury accepting all submitted bids. Since €38.30 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €12.20 million, standing at €835.60 million.
The yield from the 91-day bill auction was -0.282 per cent, increasing by 0.3 basis point from bids with a similar tenor issued on May 12, representing a bid price of €100.0713 per €100 nominal. The yield from the 182-day bill auction was -0.243 per cent, increasing by 1.8 basis points from bids with a similar tenor also issued on May 12, representing a bid price of €100.1230 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 August 25 and November 24, 2022, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.