Muscat: On Monday, the Central Bank of Oman (CBO) successfully raised OMR 49.1 million through the issuance of treasury bills.
The total value of the treasury bills allotted was OMR 3.1 million, with a maturity period of 28 days. The average accepted price was OMR 99.685 for each OMR 100, while the minimum accepted price also stood at OMR 99.685 per OMR 100. The average discount rate and yield were recorded at 4.10625% and 4.11923%, respectively.
Additionally, OMR 30 million worth of treasury bills was allotted for a maturity period of 91 days. The average accepted price for these bills was OMR 98.922 per OMR 100, with a minimum accepted price of OMR 98.920 per OMR 100. The average discount rate and yield for this issuance were 4.32385% and 4.37097%, respectively.
For a maturity period of 182 days, OMR 16 million in treasury bills was allotted. The average accepted price was OMR 97.790 for every OMR 100, with the minimum accepted price matching this figure. The average discount rate and yield for these bills were 4.43214% and 4.53231%, respectively.
Treasury bills are short-term, highly secure financial instruments issued by the Ministry of Finance, allowing licensed commercial banks to invest their excess funds. The CBO serves as the Issue Manager, offering the benefit of liquidity through discounting and repurchase agreements (Repo).
It is important to note that the interest rate for Repo operations with the CBO is set at 5.00%, while the discount rate for the Treasury Bills Discounting Facility is 5.50%.
Moreover, treasury bills enhance the local money market by establishing a benchmark yield curve for short-term interest rates. The government may also utilize this financial instrument as needed to support its recurrent expenditures.
