CBO issues treasury bills worth OMR3 million

Business Tuesday 24/December/2019 18:27 PM
By: Times News Service
CBO issues treasury bills worth OMR3 million

Muscat: Oman’s central bank raised OMR3 million by way of allotting treasury bills on Tuesday. The treasury bills are for a maturity period of 182 days, from December 25, 2019 until June 24, 2020.
The average accepted price reached 99.060 for every OMR100, and the minimum accepted price arrived at 99.060 per OMR100. Whereas the average discount rate and the average yield reached 1.88516 per cent and 1.90305 per cent, respectively.
The interest rate on the Repo operations with CBO is 2.292 per cent for the period from December 24, 2019 until December 30, 2019, while the discount rate on the Treasury Bills Discounting Facility with CBO is 3.042 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.