CBO issues treasury bills worth OMR18 million

Business Tuesday 21/February/2023 16:28 PM
By: ONA
CBO issues treasury bills worth OMR18 million

Muscat: The Central Bank of Oman (CBO) raised OMR18 million by way of allotting treasury bills on Tuesday.

The value of the allotted treasury bills amounted to OMR9 million, for a maturity period of 28 days. The average accepted price reached OMR99.655 for every OMR100, and the minimum accepted price arrived at OMR99.650 per OMR100. The average discount rate and the average yield reached 4.49732 per cent and 4.51289 per cent, respectively.

Whereas, the value of the allotted treasury bills for a maturity period of 91 days amounted to OMR9 million. The average accepted price reached OMR98.785 for every OMR100, and the minimum accepted price arrived at OMR98.775 per OMR100. The average discount rate and the average yield reached 4.87335 per cent and 4.93329 per cent, respectively.

Treasury bills are short-term highly secured financial instruments issued by the Ministry of Finance, and they provide licensed commercial banks with the opportunity to invest their surplus funds. The CBO 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 5.25 per cent while the discount rate on the Treasury Bills Discounting Facility with CBO is 5.75 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.