ECB monetary operations

On October 9, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on October 10, and attracted bids from euro area eligible counterparties of €7,498 million, €299 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 October 11, 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 $230.50 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 91-day and 182-day bills for settlement value October 12, maturing on January 11 and April 11, 2024, respectively.

Bids of €151.12 million were submitted for the 91-day bills, with the Treasury accepting €12.86 million, while bids of €44.51 million were submitted for the 182-day bills, with the Treasury accepting €6.51 million. Since €29.64 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €10.27 million, standing at €496.38 million.

The yield from the 91-day bill auction was 3.524 per cent, decreasing by 0.80 basis point from bids with a similar tenor issued on October 5, representing a bid price of €99.1171 per €100 nominal. The yield from the 182-day bill auction was 3.432 per cent, increasing by 0.90 basis point from bids with a similar tenor also issued on October 5, representing a bid price of €98.2945 per €100 nominal.

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

On October 17, the Treasury invited tenders for 91-day and 364-day bills maturing on January 18 and October 17, 2024, respectively.

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