Oman issues treasury bills worth of OMR32.77m

Muscat: A tender of Government Treasury Bills, issue number 453, was held at the Central Bank of Oman (CBO).
The total value of the allotted Treasury bills amounted to OMR32.77 million, for a maturity period of 91 days, from February 8 until May 10, 2017. The average accepted price reached 99.743 for every OMR100 while the minimum accepted price arrived at 99.740 per OMR100 and the average discount rate and the average yield reached 1.03155 per cent and 1.03422 per cent respectively.
The interest rate on the Repo operations with CBO is 1.275 per cent while the discount rate on the Treasury Bills Discounting Facility with CBO is 2.025 per cent for the same period.
Treasury Bills are short-term highly secured financial instruments issued by the Central Bank of Oman 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, 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.