ECB monetary operations

On July 17, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on July 18 and attracted bids from euro area eligible counterparties of €10,024.50 million, €1,808.50 million less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of four per cent, in accordance with current ECB policy.

On July 19, 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 $255 million, which was allotted in full at a fixed rate of 5.33 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 July 20, maturing on October 19, 2023, and January 18, 2024, respectively.

Bids of €261.08 million were submitted for the 91-day bills, with the Treasury accepting €11.96 million, while bids of €17.32 million were submitted for the 182-day bills, with the Treasury accepting €4.10 million. Since €45.56 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €29.50 million, standing at €881.09 million.

The yield from the 91-day bill auction was 3.256 per cent, decreasing by 11.60 basis points from bids with a similar tenor issued on July 13, representing a bid price of €99.1837 per €100 nominal. The yield from the 182-day bill auction was 3.238 per cent, decreasing by 5.40 basis points from bids with a similar tenor also issued on July 13, representing a bid price of €98.3894 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 273-day bills maturing on October 26, 2023, and April 25, 2024, respectively.

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