Muscat: Oman’s central bank raised OMR77.2 million by way of allotting treasury bills on Tuesday. The treasury bills are for a maturity period of 28 days, from October 2, 2019, until October 30, 2019.
The average accepted price reached 99.846 for every OMR100, and the minimum accepted price arrived at 99.845 per OMR100. Whereas the average discount rate and the average yield reached 2.00601 per cent and 2.00911 per cent, respectively.
The interest rate on the Repo operations with CBO is 2.516 per cent for the period from October 1, 2019, to October 7, 2019, while the discount rate on the Treasury Bills Discounting Facility with CBO is 3.266 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 the 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 resort to this instrument whenever felt necessary for financing its recurrent expenditures.