Friday, July 01
08:22 AM

CBO issues RO95mn worth of treasury bills

27 Jul 2021 CBO grace period By ONA

A tender of the government treasury bills (issue number 542) was announced this week by the Central Bank of Oman. Total value of the allotted treasury bills amounted to RO95mn, for a maturity period of 91 days, from July 28 until October 27. 

The average accepted price reached RO99.806 for every RO100 treasury bill, and the minimum accepted price arrived at RO99.805. The average discount rate and the average yield reached 0.7768 per cent and 0.7783 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.

Treasury bills are short-term highly secured financial instruments issued by the Ministry of Finance. These instruments provide licensed commercial banks the opportunity to invest their surplus funds.

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

Furthermore, 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.

© 2021 Apex Press and Publishing. All Rights Reserved. Powered by Mesdac