ECB monetary operations

On August 7, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on August 8 and attracted bids from euro area eligible counterparties of €5,690.50 million, €1,676 million less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 4.25 per cent, in accordance with current ECB policy.

On August 9, the ECB conducted the seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $228.50 million, which was allotted in full at a fixed rate of 5.58 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 364-day bills for settlement value August 10, maturing on November 9, 2023, and August 8, 2024, respectively.

Bids of €254.13 million were submitted for the 91-day bills, with the Treasury accepting €13.10 million, while bids of €57.58 million were submitted for the 364-day bills, with the Treasury accepting €3.60 million. Since €68.24 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €51.54 million, standing at €743.66 million.

The yield from the 91-day bill auction was 2.778 per cent, decreasing by 17.40 basis points from bids with a similar tenor issued on August 3, representing a bid price of €99.3027 per €100 nominal. The yield from the 364-day bill auction was 2.897 per cent, decreasing by 14.40 basis points from bids with a similar tenor issued on April 20, representing a bid price of €97.1542 per €100 nominal.

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

Yesterday, the Treasury invited tenders for 91-day and 273-day bills maturing on November 16, 2023, and May 16, 2024, respectively.

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