Treasury bills amounting to OMR10.79mn issued by CBO

Muscat: Oman’s central bank raised OMR10.79 million by way of allotting treasury bills on Tuesday.
The treasury bills are for a maturity period of 182 days, June 20 until December 19, 2018. The average accepted price reached 99.810 for every OMR100, and the minimum accepted price arrived at 99.800 per OMR100.
Repo operations
Whereas the average discount rate and the average yield reached 2.38604 per cent and 2.41479 per cent, respectively. The interest rate on the Repo operations with CBO is 2.584 per cent for the period from June 19,2018 to June 25, 2018 while the discount rate on the Treasury Bills Discounting Facility with CBO is 3.334 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 licenced 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.