Muscat: The Central Bank of Oman (CBO) successfully raised a total of OMR13.6 million through the issuance of treasury bills, which were allotted on Monday.
The value of these treasury bills, which were issued for a maturity period of 28 days, amounted to OMR5 million. The average price per OMR100 was OMR99.660, with a minimum price of OMR99.660 per OMR100. The average discount rate and the average yield were calculated at 4.43214 per cent and 4.44726 per cent, respectively.
Conversely, for a maturity period of 91 days, the value of the allotted treasury bills increased to OMR4.6 million. The average price per OMR100 was OMR98.736, with a minimum price of OMR98.730 per OMR100. The average discount rate and the average yield were determined at 5.07129 per cent and 5.13623 per cent, respectively.
Moreover, for a maturity period of 182 days, the value of the treasury bills rose to OMR4 million. The average price per OMR100 was OMR97.455, with a minimum price of OMR97.455 per OMR100. The average discount rate and the average yield were calculated at 5.10398 per cent and 5.23727 per cent, respectively.
It is important to note that treasury bills are short-term, highly secured financial instruments issued by the Ministry of Finance. They offer licensed commercial banks the opportunity to invest their surplus funds. The Central Bank of Oman (CBO) serves as the Issue Manager, providing additional benefits such as ready liquidity through discounting and repurchase facilities (Repo).
It should also be mentioned that the interest rate for Repo operations with the CBO is 6.00 per cent, while the discount rate for Treasury Bills Discounting Facility with the CBO is 6.50 per cent.
Furthermore, treasury bills play a crucial role in promoting the local money market by establishing a benchmark yield curve for short-term interest rates. Additionally, the government may choose to issue treasury bills as a means to finance its recurrent expenditures.
