Muscat: The Central Bank of Oman (CBO) successfully raised OMR27 million through the issuance of treasury bills, which were allocated on Monday.
The total value of the treasury bills issued was OMR6 million, with a maturity period of 28 days. 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.
For a maturity period of 91 days, the total value of the treasury bills issued increased to OMR21 million, with an average price per OMR100 of OMR98.765, with a minimum price of OMR98.765 per OMR100. The average discount rate and the average yield for this period were calculated at 4.95357 per cent and 5.01551 per cent, respectively.
Treasury bills are short-term, highly secured financial instruments issued by the Ministry of Finance, offering licensed commercial banks the opportunity to invest their surplus funds. The Central Bank of Oman (CBO) serves as the Issuer, providing the additional benefit of ready liquidity through discounting and repurchase facilities (Repo). The interest rate for repo operations with the CBO is 6.00%, while the discount rate for Treasury Bills Discounting Facility with the CBO is 6.50%.
Moreover, 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 these bills as a means to finance its recurrent expenditures when deemed necessary.
