Muscat: Oman’s central bank raised OMR58.48 million by way of allotting treasury bills on Tuesday.
The treasury bills are for a maturity period of 28 days, June 21 until July 19, 2017.
The average accepted price reached 99.931 for every OMR100, and the minimum accepted price arrived at 99.925 per OMR100. Whereas the average discount rate and the average yield reached 0.90082 per cent and 0.90144 per cent, respectively.
The interest rate on the Repo operations with CBO is 1.714 per cent for the period from June 20, 2017 to July 3, 2017 while the discount rate on the Treasury Bills Discounting Facility with CBO is 2.464 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.
Further, treasury bills promote the local money market by creating a benchmark yield curve for short-term interest rates. Also, the Government (MOF) may also resort to this instrument whenever felt necessary for financing its recurrent expenditures.