ECB monetary operations
On October 16, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on October 17, and attracted bids from euro area eligible counterparties of €7,677 million, €179 million more 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 18, 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 $243.50 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 364-day bills for settlement value October 19, maturing on January 18, and October 17, respectively. Bids of €173.33 million were submitted for the 91-day bills, with the Treasury
accepting €14.88 million, while bids of €49.81 million were submitted for the 364-day bills, with the Treasury accepting €1.30 million. Since €11.96 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €4.22 million, standing at €500.59 million.
The yield from the 91-day bill auction was 3.461 per cent, decreasing by 6.30 basis point from bids with a similar tenor issued on October 12, representing a bid price of €99.1327 per €100 nominal. The yield from the 364-day bill auction was 3.506 per cent, increasing by 60.90 basis points from bids with a similar tenor issued on August 10, 2023, representing a bid price of €96.5764 per €100 nominal.
During this week, secondary market turnover in Malta Government Treasury bills amounted to €50,000, all executed on the On-exchange market of the Malta Stock Exchange.
Today, October 24, the Treasury will invite tenders for 91-day and 273-day bills maturing on January 25 and July 25, 2024, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.