ECB monetary operations
On September 26, the European Central Bank (ECB) announced the seven-day main refinancing operation (MRO). The operation was conducted on September 27 and attracted bids from euro area eligible counterparties of €4.49 billion, €0.76 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 September 28, 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 €0.72 billion from euro area eligible counterparties.
Also on September 28, 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 $0.27 billion, which was allotted in full at a fixed rate of 3.34 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 29, maturing on December 29, 2022, and March 30, 2023, respectively. Bids of €107 million were submitted for the 91-day bills, with the Treasury accepting €43 million, while bids of €8 million were submitted for the 182-day bills, with the Treasury accepting all. Since €37 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €14 million, standing at €986.50 million.
The yield from the 91-day bill auction was 0.946 per cent, increasing by 12.2 basis points from bids with a similar tenor issued on September 22, representing a bid price of €99.7614 per €100 nominal. The yield from the 182-day bill auction was 1.607 per cent, increasing by 16.5 basis points from bids with a similar tenor issued on September 15, representing a bid price of €99.1941 per €100 nominal.
During the week, there was no trading on the Malta Stock Exchange.
Today, the Treasury will invite tenders for 91-day and 182-day bills maturing on January 5 and April 6, 2023, respectively.
This report was prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.