ECB monetary operations

On August 21, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on August 22 and attracted bids from euro area eligible counterparties of €5,891 million, €738.60 million more 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 23, 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 $230.50 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 182-day bills for settlement value August 24, maturing on November 23, 2023, and February 22, 2024, respectively.

Bids of €237.28 million were submitted for the 91-day bills, with the Treasury accepting €14.80 million, while bids of €16.94 million were submitted for the 182-day bills, with the Treasury accepting €2.01 million. Since €55.15 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €38.34 million, standing at €680.65 million.

The yield from the 91-day bill auction was 2.537 per cent, decreasing by 13.40 basis points from bids with a similar tenor issued on August 17, representing a bid price of €99.3628 per €100 nominal. The yield from the 182-day bill auction was 2.538 per cent, decreasing by 45.80 basis points from bids with a similar tenor issued on August 3, representing a bid price of €98.7332 per €100 nominal.

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

Today, August 29, the Treasury will invite tenders for 91-day and 182-day bills maturing on November 30, 2023, and February 29, 2024, respectively.

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