OMR22.5mn worth of Treasury Bills issued by CBO

Muscat: A tender of Government Treasury Bills, issue number 492 was held at the Central Bank of Oman (CBO) this week.
The results of the issue are as follows: The total value of the allotted Treasury bills amounted to OMR22,500,000 for a maturity period of 91 days, from Wednesday May 22, until August 21, 2019.
The average accepted price reached 99.381 for every OMR100 while the minimum accepted price arrived at 99.375 per OMR100.
The average discount rate and the average yield reached 2.48236 per cent and 2.49782 per cent respectively.
The interest rate on the Repo operations with CBO is 2.936 per cent for the period from 21/5/2019 to 27/5/2019 while the discount rate on the Treasury Bills Discounting Facility with CBO is 3.686 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 licenced commercial banks to gainfully invest their surplus funds, with the added advantage of ready liquidity through discounting and repurchase facilities (Repo) offered by the CBO. Furthermore, the 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.