ECB monetary operations
On November 21, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on November 22 and attracted bids from euro area eligible counterparties of €1.84 billion, €0.21 billion more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of two per cent, in accordance with current ECB policy.
On November 23, the ECB conducted the six-day US dollar-funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.20 billion, which was allotted in full at a fixed rate of 4.08 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 November 24, maturing on February 23, and May 25, 2023, respectively.
Bids of €155.40 million were submitted for the 91-day bills, with the Treasury accepting €24.20 million, while bids of €8.75 million were submitted for the 182-day bills, with the Treasury accepting €7.90 million. Since €41.50 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €9.40 million, standing at €858.48 million.
The yield from the 91-day bill auction was 1.892 per cent, increasing by 3.8 basis points from bids with a similar tenor issued on November 17, representing a bid price of €99.5240 per €100 nominal. The yield from the 182-day bill auction was 2.199 per cent, increasing by 7.8 basis points from bids with a similar tenor also issued on November 17, representing a bid price of €98.9005 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 March 2 and June 1, 2023, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.