ECB monetary operations
On July 25, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on July 26 and attracted bids from euro area eligible counterparties of €1,077.00 million, €101.00 million more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 0.50 per cent, in accordance with current ECB policy.
On July 27, 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 €173 million from euro area eligible counterparties.
Also on July 27, 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 $211.50 million, which was allotted in full at a fixed rate of 2.61 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 28, maturing on October 27, 2022 and January 26, 2023, respectively.
Bids of €91.50 million were submitted for the 91-day bills, with the Treasury accepting €24.50 million, while bids of €30.50 million were submitted for the 182-day bills, with the Treasury accepting them all.
Since €53.70 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €1.30 million, standing at €871.60 million.
The yield from the 91-day bill auction was 0.280 per cent, increasing by 13.1 basis points from bids with a similar tenor issued on July 21, representing a bid price of €99.9293 per €100 nominal.
The yield from the 182-day bill auction was 0.756 per cent, increasing by 30.5 basis points from bids with a similar tenor also issued on July 21, representing a bid price of €99.6193 per €100 nominal.
During this week, there was no trading on the Malta Stock Exchange.
Today, August 2, the Treasury will invite tenders for 91-day and 182-day bills maturing on November 3, 2022, and February 2, 2023, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.