Muscat: This week, the total issuance of Government Treasury Bills reached RO 83 million. The allotment for Treasury bills was RO 10 million, with a maturity period of 28 days. The average accepted price was RO 99.685 for every RO 100, while the minimum accepted price was also RO 99.685 per RO 100. The average discount rate and yield were recorded at 4.10625% and 4.11923%, respectively.
In another issuance, the value of the allotted Treasury bills was RO 37.5 million, with a maturity period of 91 days. The average accepted price stood at RO 98.891 for every RO 100, and the minimum accepted price was RO 98.890 per RO 100. The average discount rate and yield for this period were 4.44792% and 4.49780%, respectively.
Additionally, the value of the allotted Treasury bills for a maturity period of 182 days was RO 35.5 million. The average accepted price was RO 97.721 for every RO 100, with the minimum accepted price at RO 97.715 per RO 100. The average discount rate and yield for this issuance were 4.57083% and 4.67744%, respectively.
Treasury Bills are short-term, highly secure financial instruments issued by the Ministry of Finance, providing licensed commercial banks with opportunities to invest surplus funds. The Central Bank of Oman (CBO) serves as the Issue Manager, offering the added benefit of liquidity through discounting and repurchase facilities (Repo).
It is important to note that the interest rate for Repo operations with the CBO is 5.25%, while the discount rate for the Treasury Bills Discounting Facility is 5.75%.
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 instrument as needed to finance its recurrent expenditures.
