Muscat: A tender of Government Treasury Bills, issue number 565 was held at the Central Bank of Oman (CBO) this week.
The total value of the allotted Treasury bills amounted to OMR15 million, for a maturity period of 364 days from August 24, 2016 until August 23, 2017.
The average accepted price reached 98.645 for every OMR100 while the minimum accepted price arrived at 98.635 per OMR100. The average discount rate and the average yield reached 1.35872 per cent and 1.37739 per cent respectively.
The interest rate on the Repo operations with CBO is 1.02217 per cent for the period from 23/8/2016 to 29/8/2016 while the discount rate on the Treasury Bills Discounting Facility with CBO is 1.77217 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 licensed commercial banks to gainfully invest their surplus funds, with added advantage of ready liquidity through discounting and repurchase facilities (Repo) offered by the Central Bank.
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.