ECB monetary operations

On April 3, the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was conducted on April 4 and attracted bids from euro area eligible counterparties of €1,167 million, €543 million less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 3.50 per cent, in accordance with current ECB policy.

On a daily basis, the ECB conducted the seven-day US dollar funding operations through collateralised lending in conjunction with the US Federal Reserve. The four operations attracted bids of a total of $483.50 million, with the rate of 5.07 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 April 6, maturing on July 6 and October 5, respectively.

Bids of €233.56 million were submitted for the 91-day bills, with the Treasury accepting €37.55 million, while bids of €29.76 million were submitted for the 182-day bills, with the Treasury accepting €14.35 million. Since €50.71 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €1.20 million, standing at €786.79 million.

The yield from the 91-day bill auction was 2.905 per cent, increasing by 1.70 basis points from bids with a similar tenor issued on March 30, representing a bid price of €99.2710 per €100 nominal. The yield from the 182-day bill auction was 2.910 per cent, decreasing by 4.40 basis points from bids with a similar tenor also issued on March 30, representing a bid price of €98.5502 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 July 13 and October 12, respectively.

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