ECB monetary operations
On November 28, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on November 29 and attracted bids from euro area eligible counterparties of €2.63 billion, €0.79 billion more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of two per cent, in accordance with current ECB policy.
On November 30, the ECB conducted the three-month, longer-term refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average MRO rate over the life of the operation. The operation attracted bids of €1 billion from euro area eligible counterparties.
Also on November 30, 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 $0.20 billion, which was allotted in full at a fixed rate of 4.08 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 December 1, maturing on March 2 and June 1, 2023, respectively. Bids of €181.15 million were submitted for the 91-day bills, with the Treasury accepting €26.15 million, while bids of €24.30 million were submitted for the 182-day bills, with the Treasury accepting €18.30 million. Since €59.50 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €15.05 million, standing at €843.43 million.
The yield from the 91-day bill auction was 2.025 per cent, increasing by 13.30 basis points from bids with a similar tenor issued on November 24, representing a bid price of €99.4907 per €100 nominal. The yield from the 182-day bill auction was 2.310 per cent, increasing by 11.10 basis points from bids with a similar tenor also issued on November 24, representing a bid price of €98.8456 per €100 nominal.
During this week, there was no trading on the Malta Stock Exchange.
On December 5, the Treasury invited tenders for 92-day and 183-day bills maturing on March 9 and June 8, 2023, respectively.
This article was prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.