ECB monetary operations
On May 4, the European Central Bank announced the seven-day Main Refinancing Operation (MRO). The operation was conducted on May 5 and attracted bids from euro area eligible counterparties of €12,935.50 million, €6,740.50 million less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 2.15%, in accordance with current ECB policy.
On May 6, the ECB conducted an eight-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $21 million, which were allotted in full at a fixed rate of 3.89%.
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 May 7, maturing on August 6 and November 5, respectively.
Bids of €101.99 million were submitted for the 91-day bills, with the Treasury accepting €19.82 million, while bids of €41.69 million were submitted for the 182-day bills, with the Treasury accepting €5.31 million. Since €58.19 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €33.07 million, standing at €792.13 million.
The yield from the 91-day bill auction was 2.066%, decreasing by 1.80 basis points from bids with a similar tenor issued on April 30, representing a bid price of €99.4805 per €100 nominal. The yield from the 182-day bill auction was 1.974%, decreasing by 1.10 basis points from bids with a similar tenor also issued on April 30, representing a bid price of €99.0119 per €100 nominal.
During the week, there was no trading on the Malta Stock Exchange.
Today, May 12, the Treasury is inviting tenders for 91-day and 182-day bills maturing on August 13 and November 12, respectively.
The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.
