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08:35 AM

CBO issues RO40mn treasury bills

24 Aug 2021

A tender of the government treasury bills (issue number 156) was announced by the Central Bank of Oman (CBO) this week.

Total value of the allotted treasury bills amounted to RO40mn, for a maturity period of 182 days, from today until February 23, 2022. The average accepted price reached RO99.617 for every RO100 bill, and the minimum accepted price arrived at RO99.615.

The average discount rate and the average yield reached 0.7683 per cent and 0.7713 per cent, respectively.

The interest rate on the repo operations with the CBO is 0.5 per cent while the discount rate on the central bank’s treasury bills discounting facility is 0.75 per cent.

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

These financial 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 its 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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