CBO issues treasury bills worth RO 50m

MUSCAT: A tender of Government Treasury Bills, issue number 27 was held at the Central Bank of Oman (CBO). The results of issue are as follows: The total value of the allotted Treasury bills amounted to RO 50 million, for a maturity period of 28 days, from March 1 until March 29, 2017.

The average accepted price reached 99.960 for every RO 100 while the minimum accepted price arrived at 99.955 per RO 100. The average discount rate and the average yield reached 0.51752 per cent and 0.51772 per cent respectively.

The interest rate on the Repo operations with CBO is 1.284 per cent for the period from February 28 to March 6, 2017 while the discount rate on the Treasury Bills Discounting Facility with CBO is 2.034 per cent for the same period.

The Treasury Bills are shortterm 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.

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.