CBO issues treasury bills worth OMR59 million

Business Tuesday 11/August/2020 16:41 PM
By: Times News Service
CBO issues treasury bills worth OMR59 million

Muscat: Oman’s central bank raised OMR59 million by way of allotting treasury bills on Tuesday.
The treasury bills are for a maturity period of 28 days, from Wednesday, August 12 until September 9, 2020.
The average accepted price reached 99.949 for every OMR100, and the minimum accepted price arrived at 99.945 per OMR100. The average discount rate and the average yield reached 0.65841 per cent and 0.65875 per cent, respectively.
Note that the interest rate on the Repo operations with CBO is 0.5 per cent while the discount rate on the Treasury Bills Discounting Facility with CBO is 1 per cent.
Treasury bills are short-term highly secured financial instruments issued by the Central Bank of Oman 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.