A tender of the government treasury bills (issue number 151) was held at the Central Bank of Oman (CBO) this week.
The total value of the allotted treasury bills amounted to RO29mn, for a maturity period of 182 days, from October 28, 2020 until April 28, 2021.
The average accepted price reached RO99.723 for every RO100 bill while the minimum accepted price arrived at RO99.55. The average discount rate and the average yield reached 0.55497 per cent and 0.55695 per cent, respectively.
The interest rate on the repo operations with the CBO is 0.5 per cent while the discount rate on the treasury bills discounting facility with the CBO is 1 per cent.
Treasury bills are short-term highly secured financial instruments issued by the CBO on behalf of the government, which help the licenced 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, 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.