Friday 26 / April / 2024
Muscat: The Central Bank of Oman (CBO) raised OMR70 million by way of allotting treasury bills on Tuesday.
The value of the allotted Treasury bills for a maturity period of 91 days amounted to OMR5 million. The average accepted price reached OMR98.789 for every OMR100, and the minimum accepted price arrived at OMR98.785 per OMR100. The average discount rate and the average yield reached 4.85731 per cent and 4.91685 per cent, respectively.
Whereas, the value of the allotted treasury bills for a maturity period of 182 days amounted to OMR65 million. The average accepted price reached OMR97.461 for every OMR100, and the minimum accepted price arrived at OMR97.450 per OMR100. The average discount rate and the average yield reached 5.09180 per cent and 5.22444 per cent, respectively.
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 acts as the Issue Manager and provides the added advantage of ready liquidity through discounting and repurchase facilities (Repo).
It may be noted that the interest rate on the Repo operations with CBO is 5.00 per cent while the discount rate on the Treasury Bills Discounting Facility with CBO is 5.50 per cent.
Furthermore, 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.
