Treasury bills worth RO 11 million tendered

MUSCAT: A tender of government treasury bills, issue number 124, was held at the Central Bank of Oman (CBO) this week. The results of issue are as follows: The total value of the allotted treasury bills amounted to RO 11 million, for a maturity period of 182 days, from today until September 26, 2018.

The average accepted price reached 99.185 for every RO 100 while the minimum accepted price arrived at 99.000 per RO 100. The average discount rate and the average yield reached 1.63539 per cent and 1.64914 per cent respectively.

The interest rate on the Repo operations with CBO is 2.377 per cent for the period from March 27 to April 2 while the discount rate on the treasury bills discounting facility with CBO is 3.127 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 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. — ONA