Thursday 26 / December / 2024
Muscat: The Central Bank of Oman (CBO) raised OMR27.050 million by way of allotting treasury bills.
The value of the allotted treasury bills amounted to OMR3 million, for a maturity period of 28 days. The average accepted price reached OMR99.670 for every OMR100, and the minimum accepted price arrived at OMR99.670 per OMR100. The average discount rate and the average yield reached 4.30179 per cent and 4.31603 per cent, respectively.
Meanwhile, the value of the allotted treasury bills amounted to OMR20.550 million, for a maturity period of 91 days. The average accepted price reached OMR98.766 for every OMR100, and the minimum accepted price arrived at OMR98.765 per OMR100. The average discount rate and the average yield reached 4.94869 per cent and 5.01051 per cent, respectively.
On the other hand, the value of the allotted treasury bills amounted to OMR3.5 million, for a maturity period of 182 days. The average accepted price reached OMR97.500 for every OMR100, and the minimum accepted price arrived at OMR97.500 per OMR100. The average discount rate and the average yield reached 5.01374 per cent and 5.14229 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 (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 5.75 per cent while the discount rate on the Treasury Bills Discounting Facility with CBO is 6.25 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.
