ECB monetary operations

On October 17, the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO).

The operation was conducted on October 18 and attracted bids from euro area eligible counterparties of €3.64 billion, €0.02 billion more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 1.25 per cent, in accordance with current ECB policy.

On October 19, 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 $0.21 billion, which was allotted in full at a fixed rate of 3.33 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 20, maturing on January 19, and April 20, 2023, respectively.

Bids of €139.10 million were submitted for the 91-day bills, with the Treasury accepting €28.10 million, while bids of €3.80 million were submitted for the 182-day bills, with the Treasury accepting €0.55 million. Since €51 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €22.35 million, standing at €939.40 million.

The yield from the 91-day bill auction was 1.162 per cent, increasing by 12.00 basis points from bids with a similar tenor issued on October 13, representing a bid price of €99.7071 per €100 nominal. The yield from the 182-day bill auction was 1.845 per cent, decreasing by 0.50 basis point from bids with a similar tenor also issued on October 13, representing a bid price of €99.0759 per €100 nominal.

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

Today, October 25, the Treasury will invite tenders for 91-day and 273-day bills maturing on January 26 and July 27, 2023, respectively