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CBO issues RO192mn worth of treasury bills

4 Aug 2021

A new tender of the government treasury bills (issue number 122) was announced this week by the Central Bank of Oman (CBO).

The total value of the allotted treasury bills amounted to RO192mn, for a maturity period of 28 days, from August 4 until September 1.

The average accepted price reached RO99.951 for every RO100 bill, and the minimum accepted price arrived at RO99.950, the CBO said in a statement.

The average discount rate and the average yield reached 0.64160 per cent and 0.64192 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 with the central bank is 0.75 per cent.

Treasury bills are short-term highly secured financial instruments issued by the Ministry of Finance. They 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 (repo).

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.

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