CBO issues treasury bills worth OMR75mn

Business Tuesday 19/March/2019 16:59 PM
By: Times News Service
CBO issues treasury bills worth OMR75mn

Muscat: Oman’s central bank raised OMR75 million by way of allotting treasury bills on Tuesday.
The treasury bills are for a maturity period of 28 days, from from Wednesday until April 17, 2019.
The average accepted price reached 99.811 for every OMR100, and the minimum accepted price arrived at 99.810 per OMR100. Whereas the average discount rate and the average yield reached 2.46810 per cent and 2.47278 per cent, respectively.
The interest rate on the Repo operations with CBO is 2.988 per cent for the period from March 19, 2019 to March 25, 2019 while the discount rate on the Treasury Bills Discounting Facility with CBO is 3.738 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.