Central Bank of Oman issues treasury bills worth OMR42m

Muscat: A tender of Government Treasury Bills, issue number 449, was held at the Central Bank of Oman (CBO) this week. The total value of the allotted treasury bills amounted to OMR42 million for 91 days from November 2, till February 1, 2017.
The average accepted price reached 99.788 for every OMR100, the minimum accepted price arrived at 99.785 per OMR100 whereas the average discount rate and the average yield reached 0.85138 per cent and 0.85319 per cent respectively.
The interest rate on the Repo operations with CBO is 1.034 per cent for the period from 1/11/2016 to 7/11/2016 while the discount rate on the Treasury Bills Discounting Facility with CBO is 1.784 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.