Treasury bills worth OMR28.4mn issued

Treasury bills are short-term highly secured financial instruments issued by the Ministry of Finance, and they provide licensed commercial banks the opportunity to invest their surplus funds

Muscat: The Central Bank of Oman (CBO) raised OMR28.4 million by way of allotting treasury bills on Tuesday.

The value of the allotted treasury bills amounted to OMR400,000, for a maturity period of 28 days. The average accepted price reached OMR99.650 for every OMR100, and the minimum accepted price arrived at OMR99.650 per OMR100. The average discount rate and the average yield reached 4.56250 per cent and 4.57852 per cent, respectively.

The value of the allotted treasury bills amounted to OMR28 million, for a maturity period of 91 days. The average accepted price reached OMR98.755 for every OMR100, and the minimum accepted price arrived at OMR98.755 per OMR100. The average discount rate and the average yield reached 4.99297 per cent and 5.05590 per cent, respectively.

Treasury bills are short-term highly secured financial instruments issued by the Ministry of Finance, and they provide licensed commercial banks the opportunity to invest their surplus funds. The Central Bank of Oman (CBO) acts as the Issue Manager and provides the added advantage of ready liquidity through discounting and repurchase facilities (Repo).

It may be noted that the interest rate on the Repo operations with CBO is 5.75 per cent while the discount rate on the Treasury Bills Discounting Facility with CBO is 6.25 per cent.

Furthermore, treasury bills promote the local money market by creating a benchmark yield curve for short-term interest rates. Additionally, the government may also resort to this instrument whenever felt necessary for financing its recurrent expenditures.