ECB monetary operations

On May 15, the European Central Bank announced the seven-day main refinancing operations (MRO). The operation was conducted on May 16 and attracted bids from euro area eligible counterparties of €1,410 million, €83 million more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 3.75 per cent, in accordance with current ECB policy.

On May 17, the ECB conducted the six-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $391 million, which was allotted in full at a fixed rate of 5.33 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 18, maturing on August 17 and November 16, respectively.

Bids of €239.62 million were submitted for the 91-day bills, with the Treasury accepting €44.47 million, while bids of €32.77 million were submitted for the 182-day bills, with the Treasury accepting €19.49 million. Since €45.95 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €18.01 million, standing at €822.27 million.

The yield from the 91-day bill auction was 3.197 per cent, increasing by 4.10 basis points from bids with a similar tenor issued on May 11, representing a bid price of €99.1983 per €100 nominal. The yield from the 182-day bill auction was 3.151 per cent, increasing by 10.50 basis points from bids with a similar tenor issued on May 4, representing a bid price of €98.4320 per €100 nominal.

During the week, there was no trading on the Malta Stock Exchange.

Today, May 23, the Treasury will invite tenders for 91-day and 182-day bills maturing on August 24 and November 23, respectively.

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