ECB monetary operations
On November 22, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on November 23 and attracted bids from euro area eligible counterparties of €157 million, €15 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 24, 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 November 24, 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 $217.50 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 25, maturing on December 23, 2021, and February 24, 2022, respectively. Bids of €51 million were submitted for the 28-day bills, with the Treasury accepting €26 million, while bids of €58.72 million were submitted for the 91-day bills, with the Treasury accepting €18 million. Since €57 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €13 million, standing at €645 million.
The yield from the 28-day bill auction was -0.424 per cent, increasing by 0.8 basis points from bids with a similar tenor issued on November 18, representing a bid price of €100.0330 per €100 nominal.
The yield from the 91-day bill auction was -0.433 per cent, decreasing by 0.7 basis point from bids with a similar tenor also issued on November 18, representing a bid price of €100.1096 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 30, 2021, and March 3, 2022, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.