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CBO issues RO209mn treasury bills

31 Aug 2021

A tender of the government treasury bills (issue number 124) was announced this week by the Central Bank of Oman (CBO).

Total value of allotted treasury bills amounted to RO209mn, for a maturity period of 28 days, from today until September 29, 2021. The average accepted price reached RO99.954 for every RO100, and the minimum accepted price arrived at RO99.950. 

The average discount rate and the average yield reached 0.5972 per cent and 0.5974 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, 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).

Treasury bills promote the local money market by creating a benchmark yield curve for short-term interest rates.

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