ECB monetary operations
On August 29, the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was conducted on August 30 and attracted bids from euro area eligible counterparties of €3.87 billion, €3.13 billion more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 0.50 per cent, in accordance with current ECB policy.
On August 31, 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 €725 million from euro area eligible counterparties.
Also on August 31, 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 $196.50 million, which was allotted in full at a fixed rate of 2.58 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 September 1, maturing on December 1, 2022, and March 2, 2023, respectively.
Bids of €60.50 million were submitted for the 91-day bills, with the Treasury accepting €44.50 million, while bids of €24 million were submitted for the 182-day bills, with the Treasury accepting €16 million.
Since €38 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €22.50 million, standing at €957.00 million.
The yield from the 91-day bill auction was 0.492 per cent, increasing by 8.5 basis points from bids with a similar tenor issued on August 25, representing a bid price of €99.8758 per €100 nominal.
The yield from the 182-day bill auction was 1.004 per cent, increasing by 15.7 basis points from bids with a similar tenor also issued on August 25, representing a bid price of €99.4950 per €100 nominal.
During this week, there was no trading on the Malta Stock Exchange.
Yesterday, the Treasury invited tenders for 91-day and 183-day bills maturing on December 7, 2022, and March 9, 2023, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.