Central Bank of Oman raises OMR35m from treasury bills auction

Muscat: Oman's central bank raised OMR34.78 million from treasury bills auction.
The treasury bills are for a maturity period of 182 days, from December 20 to June 20, 2018. The average accepted price reached 99.303 for every OMR100, while the minimum accepted price arrived at 99.250 per OMR100. Whereas the average discount rate and the average yield reached 1.39779 per cent and 1.40761 per cent,
respectively.
The interest rate on the Repo operations with CBO is 2.001 per cent for the period from December 19, 2017 to December 25, 2017, while the discount rate on the
Treasury Bills Discounting Facility with CBO is 2.751 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, 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.