CBO issues treasury bills worth OMR104mn

Business Tuesday 22/January/2019 15:37 PM
By: Times News Service
CBO issues treasury bills worth OMR104mn

Muscat: Oman’s central bank raised OMR104 million by way of allotting treasury bills on Tuesday.
The treasury bills are for a maturity period of 91 days, from January 23, 2019 until April 24, 2019.
The average accepted price reached 99.379 for every OMR100, and the minimum accepted price arrived at 99.320 per OMR100. Whereas the average discount rate and the average yield reached 2.49106 per cent and 2.50667 per cent, respectively.
The interest rate on the Repo operations with CBO is 3.012 per cent for the period from January 22, 2019 to January 28, 2019 while the discount rate on the Treasury Bills Discounting Facility with CBO is 3.762 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.