ECB monetary operations

On November 8, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on November 9 and attracted bids from euro area eligible counterparties of €254 million, €186 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 November 10, the ECB conducted a six-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 28-day and 90-day bills for settlement value November 11, maturing on December 9, 2021 and February 9, 2022, respectively. Bids of €46 million were submitted for the 28-day bills, with the Treasury accepting €6 million, while bids of €56 million were submitted for the 90-day bills, with the Treasury accepting €14 million. Since €40 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €20.00 million, standing at €688 million.

The yield from the 28-day bill auction was -0.439 per cent, increasing by 1.8 basis points from bids with a similar tenor issued on November 4, representing a bid price of €100.0342 per €100 nominal. The yield from the 90-day bill auction was -0.440 per cent, 0.5 basis point higher from bids with a similar tenor issued on October 21, representing a bid price of €100.1101 per €100 nominal. During this week, there was no trading on the Malta Stock Exchange.

Today, the Treasury will invite tenders for 28-day and 91-day bills maturing on December 16, 2021, and February 17, 2022, respectively. 

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