CBO issues treasury bills worth OMR27 million

Muscat: The Central Bank of Oman (CBO) raised OMR27 million by way of allotting treasury bills on Monday.

The value of the allotted Treasury bills amounted to OMR8 million, for a maturity period of 28 days. The average accepted price reached OMR99.660 for every OMR100, and the minimum accepted price arrived at OMR99.660 per OMR100. The average discount rate and the average yield reached 4.43214 per cent and 4.44726 per cent, respectively.

Whereas the value of the allotted treasury bills amounted to OMR19 million for a maturity period of 91 days. The average accepted price reached OMR98.684 for every OMR100, and the minimum accepted price arrived at OMR98.680 per OMR100. The average discount rate and the average yield reached 5.27973 per cent and 5.35015 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 6.00 per cent while the discount rate on the Treasury Bills Discounting Facility with CBO is 6.50 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 it feels necessary to finance its recurrent expenditures.