Oman issues treasury bills worth OMR55m

Muscat: A tender of Government Treasury Bills, issue number 445, was held at the Central Bank of Oman (CBO) this week.
The total value of the allotted Treasury bills amounted to OMR55 million, for a maturity period of 91 days, from June 15, until September 14, 2016.
The average accepted price reached 99.800 for every OMR100, while the minimum accepted price arrived at 99.785 per OMR100. Whereas the average discount rate and the average yield reached 0.80402 per cent and 0.80565 per cent, respectively.
The Treasury Bills are short-term highly secured financial instruments issued by the CBO on behalf of the
Government, which helps the licenced 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.
The interest rate on the Repo operations with CBO is one per cent, while the discount rate on the Treasury Bills Discounting Facility with CBO is 1.75 per cent, for the same period.