ECB monetary operations

On July 11, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on July 12 and attracted bids from euro area eligible counterparties of €916 million, €124.50 million less 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 July 13, 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 $194.60 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 273-day bills for settlement value July 14, maturing on October 13, 2022 and April 13, 2023, respectively. Bids of €65 million were submitted for the 91-day bills, with the Treasury accepting €42 million, while bids of €31.50 million were submitted for the 273-day bills, with the Treasury accepting €4.50 million. Since €46.50 million worth of bills matured during the week, the outstanding balance of Treasury bills remained unchanged at €867.40 million.

The yield from the 91-day bill auction was 0.109 per cent, increasing by 1.6 basis points from bids with a similar tenor issued on July 7, representing a bid price of €99.9725 per €100 nominal. The yield from the 273-day bill auction was 0.437 per cent, decreasing by 41.7 basis points from bids with a similar tenor issued on June 23, representing a bid price of €99.6697 per €100 nominal.

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

Today, the Treasury will invite tenders for 91-day and 182-day bills maturing on October 20, 2022, and January 19, 2023, respectively.

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