CBO issues treasury bills worth OMR27 million

Business Tuesday 17/December/2019 17:16 PM
By: Times News Service
CBO issues treasury bills worth OMR27 million

Muscat: Oman’s central bank raised OMR27 million by way of allotting treasury bills on Tuesday.
The treasury bills are for a maturity period of 28 days, from December 18, 2019, until January 15, 2020.
The average accepted price reached 99.867 for every OMR100 while the minimum accepted price arrived at 99.865 per OMR100. The average discount rate and the average yield reached 1.73327 per cent and 1.73558 per cent respectively.
The interest rate on the Repo operations with the CBO is 2.245 per cent for the period from December 17, 2019 to December 23, 2019 while the discount rate on the Treasury Bills Discounting Facility with the CBO is 2.995 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 help 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 CBO.
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.