CBO issues treasury bills worth OMR5.5 million

Muscat: Oman’s central bank raised OMR5.5 million by way of allotting treasury bills on Tuesday.
The treasury bills are for a maturity period of 28 days, from Wednesday until May 13, 2020.
The average accepted price reached 99.937 for every OMR100 while the minimum accepted price arrived at 99.935 per OMR100. The average discount rate and the average yield reached 0.81769 per cent and 0.81821 per cent respectively.
The interest rate on the Repo operations with the CBO is 0.500 per cent while the discount rate on the Treasury Bills Discounting Facility with the CBO is 1 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, the 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.