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CBO issues RO146mn treasury bills

6 Jul 2021

The Central Bank of Oman (CBO) on Tuesday issued a tender of the government treasury bills (issue number 121). Total value of the allotted treasury bills amounted to RO146mn, for a maturity period of 28 days, from July 7, 2021 until August 4, 2021.

The average accepted price reached RO99.950 for every RO100 worth of treasury bill, while the minimum accepted price also arrived at RO99.950, according to a statement issued by the CBO.

The average discount rate and 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 the central bank is 0.75 per cent.

The government treasury bills are short-term highly secured financial instruments issued by the Ministry of Finance. This instrument provides licensed commercial banks the opportunity to invest their surplus funds.

The Central Bank of Oman acts as the issue manager for the treasury bills issuance and provides the added advantage of ready liquidity through its discounting and repurchase facilities.

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

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