Central Bank of Oman issues treasury bills worth OMR60.77m

Muscat: Oman’s central bank raised OMR60.77 million on Tuesday. The treasury bills are for a maturity period of 91 days, from July 5 until October 4, 2017.
The average accepted price reached 99.724 for every OMR100, and the minimum accepted price arrived at 99.715 per OMR100. Whereas the average discount rate and the average yield reached 1.10670 per cent and 1.10977 per cent respectively.
The interest rate on the Repo operations with CBO is 1.727 per cent for the period from July 4, 2017 to July 10, 2017 while the discount rate on the Treasury Bills Discounting Facility with CBO is 2.477 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.