ECB monetary operations
On August 28, the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was conducted on August 29 and attracted bids from euro area eligible counterparties of €7,036 million, €1,145 million more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 4.25 per cent, in accordance with current ECB policy.
On August 30, the ECB conducted the three-month, longer-term refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average MRO rate over the life of the operation. The operation attracted bids of €2,205 million from euro area eligible counterparties.
Also on August 30, 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 $232.30 million, which was 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 August 31, maturing on November 30, 2023, and February 29, 2024, respectively.
Bids of €201.32 million were submitted for the 91-day bills, with the Treasury accepting €15.17 million, while bids of €11.98 million were submitted for the 182-day bills, with the Treasury accepting €2.50 million. Since €44.37 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €26.70 million, standing at €653.96 million.
The yield from the 91-day bill auction was 2.460 per cent, decreasing by 7.70 basis points from bids with a similar tenor issued on August 24, representing a bid price of €99.3820 per €100 nominal. The yield from the 182-day bill auction was 2.249 per cent, decreasing by 28.90 basis points from bids with a similar tenor issued on August 24, representing a bid price of €98.8758 per €100 nominal.
During this week, there was no trading on the Malta Stock Exchange.
Today, the Treasury will invite tenders for 91-day bills maturing on December 7, 2023.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.