ECB monetary operations

On November 15, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on November 16 and attracted bids from euro area eligible counterparties of €172 million, €82 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 November 17, the ECB conducted an eight-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $216.50 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 91-day bills for settlement value November 18, maturing on December 16, 2021, and February 17, 2022, respectively.

Bids of €55 million were submitted for the 28-day bills, with the Treasury accepting €5 million, while bids of €50 million were submitted for the 91-day bills, with the Treasury accepting €15 million. Since €50 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €30 million, standing at €658 million.

The yield from the 28-day bill auction was -0.432 per cent, increasing by 0.7 basis points from bids with a similar tenor issued on November 11, representing a bid price of €100.0336 per €100 nominal. The yield from the 91-day bill auction was -0.426 per cent, 1.4 basis points higher from bids with a similar tenor also issued on November 11, representing a bid price of €100.1078 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 23, 2021, and February 24, 2022, respectively. 

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