ECB monetary operations

On November 6, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on November 7 and attracted bids from euro area eligible counterparties of €6,850 million, €1,277 million less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 4.50 per cent, in accordance with current ECB policy.

On November 8, 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 $281 million, which were allotted in full at a fixed rate of 5.58 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 91-day bills for settlement value November 9, maturing on December 7, 2023, and February 8, 2024, respectively.

Bids of €84.45 million were submitted for the 28-day bills, with the Treasury accepting €3.45 million, while bids of €106.88 million were submitted for the 91-day bills, with the Treasury accepting €27.78 million. Since €13.10 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €18.13 million, standing at €523.90 million.

The yield from the 28-day bill auction was 3.637 per cent, increasing by 36.50 basis points from bids with a similar tenor issued on November 2, representing a bid price of €99.7179 per €100 nominal.

The yield from the 91-day bill auction was 3.412 per cent, decreasing by 3.20 basis points from bids with a similar tenor issued on October 26, representing a bid price of €99.1449 per €100 nominal.

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

Today, the Treasury will invite tenders for 28-day and 91-day bills maturing on December 14, 2023, and February 15, 2024, respectively.

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