Muscat: This week, the total issuance of Government Treasury bills reached OMR52 million. The allotted Treasury bills totaled OMR12.8 million, with a maturity period of 28 days. The average accepted price was OMR99.680 for every OMR100, while the minimum accepted price was also OMR99.680 per OMR100. The average discount rate and yield were recorded at 4.16939% and 4.18277%, respectively.
In addition, OMR18.2 million worth of Treasury bills were allotted for a maturity period of 91 days. The average accepted price for these bills was OMR98.918 per OMR100, with a minimum accepted price of OMR98.900 per OMR100. The average discount rate and yield for this issuance were 4.33936% and 4.38683%, respectively.
Furthermore, OMR21 million in Treasury bills were allotted for a maturity period of 182 days. The average accepted price was OMR97.780 for every OMR100, with a minimum accepted price of OMR97.750 per OMR100. The average discount rate and yield for this category were 4.45220% and 4.55332%, 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 Central Bank of Oman (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.
