Central Bank of Oman issues OMR59m treasury bills

Business Tuesday 04/April/2017 17:04 PM
By: Times News Service
Central Bank of Oman issues OMR59m treasury bills

Muscat: A tender of government treasury bills was held at the Central Bank of Oman (CBO) this week.
The results of issue are as follows: The total value of the allotted Treasury bills amounted to OMR59 million, for a maturity period of 91 days, from 5th April until 5th July 2017. The average accepted price reached 99.735 for every OMR100 while the minimum accepted price arrived at 99.730 per OMR100. The average discount rate and the average yield reached 1.06257 per cent and 1.06540 per cent respectively.
Note that the interest rate on the repo operations with CBO is 1.483 per cent for the period from 04/04/2017 to 10/04/2017 while the discount rate on the Treasury Bills Discounting Facility with CBO is 2.233 per cent for the same period.
Treasury Bills are short-term highly secured financial instruments issued by the CBO on behalf of the Government, which help 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, 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.