CBO issues treasury bills worth OMR218.4 million

Muscat: Oman’s central bank raised OMR218.4 million by way of allotting treasury bills on Tuesday.

The treasury bills are for a maturity period of 28 days, from June 16, 2021, until July 14, 2021.

The average accepted price reached 99.951 for every OMR 100, and the minimum accepted price arrived at 99.950 per OMR 100. The average discount rate and the average yield reached 0.63686 per cent and 0.63718 per cent, respectively.

The interest rate on the Repo operations with CBO is 0.5 per cent while the discount rate on the Treasury Bills Discounting Facility with CBO is 0.75 per cent.

The treasury bills are short-term highly secured financial instruments issued by the Ministry of Finance, and they provide licensed commercial banks the opportunity to invest their surplus funds. The Central Bank of Oman (CBO) acts as the Issue Manager and provides the added advantage of ready liquidity through discounting and repurchase facilities (Repo).

Furthermore, the treasury bills promote the local money market by creating a benchmark yield curve for short-term interest rates. Additionally, the government may also resort to this instrument whenever felt necessary for financing its recurrent expenditures.