Central Bank of Oman issues treasury bills worth OMR62m

Muscat: A tender of Government Treasury Bills, issue number 9, was held at the Central Bank of Oman (CBO) this week.
The total value of the allotted Treasury bills amounted to OMR62 million, for a maturity period of 28 days, from June 8 until July 6, 2016.
The average accepted price reached 99.961 for every OMR100, while the minimum accepted price arrived at 99.960 per OMR100. Whereas the average discount rate and the average yield reached 0.51092 per cent and 0.51112 per cent, respectively.
The interest rate on the Repo operations with CBO is one per cent for the period from June 8 until July 6, 2016, while the discount rate on the Treasury Bills Discounting Facility with CBO is 1.75 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.