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ECB monetary operations

On May 2, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on May 3 and attracted bids from euro area eligible counterparties of €549 million, €171.50 million less than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of zero percent, in accordance with current ECB policy.

On May 4, 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 $222 million, which was allotted in full at a fixed rate of 1.10 percent.

Domestic Treasury Bill Market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 273-day bills for settlement value May 5, maturing on August 4, 2022, and February 2, 2023, respectively. Bids of €52.50 million were submitted for the 91-day bills, with the Treasury accepting €42.50 million, while bids of €14.50 million were submitted for the 273-day bills, with the Treasury accepting €12.50 million. Since €37 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €18 million, standing at €827.40 million.

The yield from the 91-day bill auction was -0.298 percent, decreasing by 0.4 basis point from bids with a similar tenor issued on April 28, representing a bid price of €100.0754 per €100 nominal. The yield from the 273-day bill auction was -0.255 percent, increasing by 6.4 basis points from bids with a similar tenor issued on March 24, representing a bid price of €100.1937 per €100 nominal.

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

On May 10, the Treasury invited tenders for 91-day and 182-day bills maturing on August 11 and November 10, respectively.

ARTICLE WRITTEN BY TIMES MALTA

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