CBO issues treasury bills worth OMR18mn

Business Tuesday 15/January/2019 15:37 PM
By: Times News Service
CBO issues treasury bills worth OMR18mn

Muscat: Oman’s central bank raised OMR18 million by way of allotting treasury bills on Tuesday.
The treasury bills are for a maturity period of 28 days, from January 16, 2019 (Wednesday) until February 13, 2019.
The average accepted price reached 99.813 for every OMR100, and the minimum accepted price arrived at 99.810 per OMR100. Whereas the average discount rate and the average yield reached 2.44058 per cent and 2.44516 per cent, respectively.
The interest rate on the Repo operations with CBO is 3.01 per cent for the period from January 15, 2019 to January 21, 2019 while the discount rate on the Treasury Bills Discounting Facility with CBO is 3.76 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.