ECB monetary operations

On June 27, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on June 28 and attracted bids from euro area eligible counterparties of €1,482.50 million, €794.50 million more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of zero per cent, in accordance with current ECB policy.

On June 29, 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 €400.50 million from euro area eligible counterparties. Also on June 29, 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 $346.50 million, which was allotted in full at a fixed rate of 1.84 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 June 30, maturing on September 29 and December 29, respectively. Bids of €30 million were submitted for the 91-day bills, with the Treasury accepting all submitted bids, while bids of €40 million were submitted for the 182-day bills, with the Treasury accepting €32 million. Since €47 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €15 million, standing at €862.10 million.

The yield from the 91-day bill auction was 0.040 per cent, increasing by 9.4 basis points from bids with a similar tenor issued on June 16, representing a bid price of €99.9899 per €100 nominal.

The yield from the 182-day bill auction was 0.40 per cent, increasing by 1.0 basis point from bids with a similar tenor issued on June 23, representing a bid price of €99.7982 per €100 nominal.

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

On July 5, the Treasury will invite tenders for 91-day and 182-day bills maturing on October 6, 2022 and January 5, 2023, respectively.

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

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