Muscat – A tender of the government treasury bills (issue number 127) was announced by the Central Bank of Oman (CBO) this week.
Total value of the allotted treasury bills amounted to RO93mn, for a maturity period of 28 days, from November 3, 2021 until December 1, 2021. The average accepted price reached RO99.952 for every RO100 treasury bill, and the minimum accepted price arrived at RO99.950.
The average discount rate and average yield reached 0.6307 per cent and 0.6310 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 (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.