Muscat: Treasury bills worth more than OMR90 million were allotted at a tender of Government Treasury Bills, held at the Central Bank of Oman (CBO) this week.
The results of issue number 045, was are as follows: the total value of the allotted Treasury bills amounted to OMR93.1 million, for a maturity period of 28 days, from November 8 until December 6 2017.
The average accepted price reached 99.922 for every OMR100, and the minimum accepted price arrived at 99.920 per OMR100.
The average discount rate and the average yield reached 1.02003 per cent and 1.02083 per cent respectively.
Note that the interest rate on the Repo operations with CBO is 1.744 per cent for the period from 7/11/2017 to 13/11/2017 while the discount rate on the Treasury Bills Discounting Facility with CBO is 2.494 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.