ECB monetary operations
On December 5, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on December 6 and attracted bids from euro area eligible counterparties of €1.38 billion, €1.25 billion less 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 December 7, 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 $0.21 billion, which was allotted in full at a fixed rate of 4.09 per cent.
During the week under review, participants in the TLTRO-III operations three to 10 had the option of terminating or reducing their outstanding amount before maturity. Accordingly, on December 21, a total of €447.49 billion will be repaid.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 92-day and 183-day bills for settlement value December 7, maturing on March 9, and June 8, 2023, respectively. Bids of €151.54 million were submitted for the 92-day bills, with the Treasury accepting €31.54 million, while bids of €22 million were submitted for the 183-day bills, with the Treasury accepting €14 million. Since €40.50 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €5.04 million, standing at €848.47 million.
The yield from the 92-day bill auction was 2.100 per cent, increasing by 7.50 basis points from bids with a similar tenor issued on December 1, representing a bid price of €99.4662 per €100 nominal. The yield from the 183-day bill auction was 2.422 per cent, increasing by 11.20 basis points from bids with a similar tenor also issued on December 1, 2022, representing a bid price of €98.7838 per €100 nominal.
During this week, there was no trading on the Malta Stock Exchange.
Yesterday, December 12, the Treasury invited tenders for 91-day and 182-day bills maturing on March 16 and June 15, 2023, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.