Muscat: Oman’s central bank raised OMR24 million by way of allotting treasury bills on Tuesday.
The treasury bills are for a maturity period of 182 days, from Wednesday until October 28, 2020.
The average accepted price reached 99.580 for every OMR100 while the minimum accepted price arrived at 99.500 per OMR100. The average discount rate and the average yield reached 0.84189 per cent and 0.84558 per cent, respectively.
Note that the interest rate on the Repo operations with CBO is 0.500 per cent while the discount rate on the Treasury Bills Discounting Facility with CBO is 1.000 per cent.
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 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.