CBO tenders treasury bills worth RO 52m

MUSCAT: A tender of government treasury bills, issue number 55, was held at the Central Bank of Oman (CBO) this week.

The results of the issue are as follows: The total value of the allotted treasury bills amounted to RO 52 million, for a maturity period of 28 days, from today until May 16.

The average accepted price reached 99.882 for every RO 100 while the minimum accepted price arrived at 99.880 per RO 100.

The average discount rate and the average yield reached 1.53922 per cent and 1.54104 per cent respectively.

The interest rate on the Repo operations with CBO is 2.394 per cent for the period from April 17 to April 23 while the discount rate on the treasury bills discounting facility with CBO is 3.144 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 an 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.