CBO announces treasury bills worth OMR50 million

Muscat: Oman’s central bank raised OMR50 million by way of allotting treasury bills.
The treasury bills are for a maturity period of 28 days, from Wednesday until June 3, 2020.
The average accepted price reached 99.953 for every OMR100 while the minimum accepted price arrived at 99.935 per OMR100.
The average discount rate and the average yield reached 0.61268 per cent and 0.61299 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.