Muscat: The Central Bank of Oman (CBO) successfully raised OMR48 million through the issuance of treasury bills, which were allocated on Monday.
The value of these treasury bills, with a maturity period of 28 days, amounted to RO 15 million. The average price per RO 100 was set at RO 99.685, with a minimum price of RO 99.680. The average discount rate and the average yield were recorded at 4.11060% and 4.12360%, respectively.
Conversely, a total of RO 33 million in treasury bills, also with a maturity period of 91 days, was allotted. The average price per RO 100 was set at RO 98.866, with a minimum price of RO 98.865. The average discount rate and the average yield were recorded at 4.54700% and 4.59914%, 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 5.25%, whereas the discount rate for Treasury Bills Discounting Facility with the CBO is 5.75%.
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 when necessary for financing its recurrent expenditures.
