Central Bank of Oman announces treasury bill tender results

Muscat: Results of issue number 24 of Government Treasury bills have been announced.
The tender was held at the Central Bank of Oman this week. The results of issue are as follows: The total value of the allotted Treasury bills amounted to OMR40 million, for a maturity period of 28 days, from 1st February 1 until March 1, 2017.
The average accepted price reached 99.965 for every OMR100 while the minimum accepted price arrived at 99.965 per OMR100. The average discount rate and the average yield reached 0.45625 per cent and 0.45641 per cent respectively.
The interest rate on the Repo operations with CBO is 1.28 per cent for the period from January 31, 2017 to February 6, 2017 while the discount rate on the Treasury Bills Discounting Facility with CBO is 2.03 per cent for the same period.
The Treasury Bills are short-term highly secured financial instruments issued by the CBO on behalf of the Government, which helps the licensed commercial banks to gainfully invest their surplus funds, with added advantage of ready liquidity through discounting and repurchase facilities (Repo) offered by the Central Bank.
Furthermore, the Treasury Bills promote the local money market by creating a benchmark yield curve for short-term interest rates. Additionally, the Government (MOF) may also resort to this instrument whenever felt necessary for financing its recurrent expenditures.