ECB monetary operations

On August 15, the European Central Bank announced the seven-day main refinancing operation (MRO).

The operation was conducted on August 16 and attracted bids from euro area eligible counterparties of €823 million, €84 million less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 0.50 per cent, in accordance with current ECB policy.

On August 17, 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 $165 million, which was allotted in full at a fixed rate of 2.58 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 August 18, maturing on November 17, 2022, and February 16, 2023, respectively.

Bids of €79 million were submitted for the 91-day bills, with the Treasury accepting €27.50 million, while bids of €48 million were submitted for the 182-day bills, with the Treasury accepting €22 million. Since €43.80 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €5.70 million, standing at €928 million.

The yield from the 91-day bill auction was 0.363 per cent, increasing by 1.4 basis points from bids with a similar tenor issued on August 11, representing a bid price of €99.9083 per €100 nominal. The yield from the 182-day bill auction was 0.824 per cent, increasing by 2.6 basis points from bids with a similar tenor also issued on August 11, representing a bid price of €99.5852 per €100 nominal.

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

Today, August 23, the Treasury will invite tenders for 91-day and 182-day bills maturing on November 24, 2022, and February 23, 2023, respectively.

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