A tender of the government treasury bills (issue number 114) was announced this week by the Central Bank of Oman (CBO). Total value of the allotted treasury bills amounted to RO192mn, for a maturity period of 28 days, from today until April 14.
Average accepted price reached RO99.950 for every RO100 bill, and the minimum accepted price also arrived at RO99.950.
The average discount rate and the average yield reached 0.65179 per cent and 0.65211 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 central bank is 1 per cent.
Treasury bills are short-term highly secured financial instruments issued by the Ministry of Finance. This financial instrument provides licensed commercial banks the opportunity to invest their surplus funds. The CBO acts as the issue manager and provides the added advantage of ready liquidity through discounting and repurchase facilities (repo).
Furthermore, the treasury bills promote the local money market by creating a benchmark yield curve for short-term interest rates.