A tender of the government treasury bills (issue number 104) was held at the Central Bank of Oman (CBO) this week. The total value of the allotted treasury bills amounted to RO71mn, for a maturity period of 28 days, from November 4, 2020 until December 2, 2020.
The average accepted price reached RO99.95 for every RO100 bill, and the minimum accepted price also arrived at RO99.95. The average discount rate and the average yield reached 0.6517 per cent and 0.6521 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 CBO is 1 per cent.
Treasury bills are short-term highly secured financial instruments issued by the CBO on behalf of the Omani government. This financial instrument 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, treasury bills promote the local money market by creating a benchmark yield curve for short-term interest rates. The Ministry of Finance may also resort to this instrument whenever felt necessary for financing its recurrent expenditures.