Central Bank of Oman issues treasury bills worth OMR26m

MUSCAT: Treasury bills worth OMR26 million was allotted by the Central Bank of Oman (CBO). The treasury bills have a maturity period of 364 days, from July 27, 2016 to July 26, 2017.

The average accepted price reached 98.646 for every OMR100 while the minimum accepted price arrived at 98.610 per OMR100. The average discount rate and the average yield reached 1.35757 per cent and 1.37621 per cent respectively.

Note that the interest rate on the repo operations with CBO is 1 per cent for the period from July 26 to August 1, while the discount rate on the Treasury bills discounting facility with CBO is 1.75 per cent for the same period.

Treasury bills tender results are short-term highly secured financial instruments issued by the Central Bank of Oman 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.

Local money market

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.