Muscat: A tender of Government Treasury Bills, issue number 077, was held at the Central Bank of Oman (CBO) this week.
The results of issue are as follows: The total value of the allotted Treasury bills amounted to OMR65 million, for a maturity period of 28 days, from May 15, 2019 until June 12, 2019.
The average accepted price reached 99.814 for every OMR100, and the minimum accepted price arrived at 99.810 per OMR100. The average discount rate and the average yield reached 2.42665 per cent and 2.43117 per cent, respectively.
The interest rate on the Repo operations with CBO is 2.940 per cent for the period from 14/5/2019 to 20/5/2019, while the discount rate on the Treasury Bills Discounting Facility with CBO is 3.690 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. 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.