A tender of government treasury bills (issue number 536) was held at the Central Bank of Oman (CBO) this week. The total value of the allotted treasury bills amounted to RO122mn, for a maturity period of 91 days (from today until July 14, 2021).
The average accepted price reached RO99.803 for every RO100 bill, and the minimum accepted price arrived at RO99.800.
The average discount rate and the average yield reached 0.79069 per cent and 0.79225 per cent, respectively. It may be noted that 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 0.75 per cent.
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 CBO acts as the issue manager and provides the added advantage of ready liquidity through discounting and repurchase facilities (Repo).
Furthermore, treasury bills promote the local money market by creating a benchmark yield curve for short-term interest rates.