ECB monetary operations

On September 4, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on September 5 and attracted bids from euro area eligible counterparties of €3,946 million, €3,090 million less 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 September 6, 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 $230.00 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 bills for settlement value September 7, maturing on December 7. Bids of €168.25 million were submitted, with the Treasury accepting €18.18 million. Since €55.82 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €37.65 million, standing at €616.31 million.

The yield from the 91-day bill auction was 2.405 per cent, decreasing by 5.50 basis points from bids with a similar tenor issued on August 31, representing a bid price of €99.3957 per €100 nominal.

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

Today, the Treasury will invite tenders for 91-day bills maturing on December 14.

The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.