MUSCAT: A tender of government treasury bills, issue number 467, was held at the Central Bank of Oman (CBO) this week.
The results of issue are as follows: the total value of the allotted treasury bills amounted to RO 62.81 million, for a maturity period of 91 days, from October 18, 2017 until January 17, 2018.
The average accepted price reached 99.711 for every RO 100, while the minimum accepted price arrived at 99.705 per RO 100.
The average discount rate and the average yield reached 1.15852 per cent and 1.1619 per cent respectively.
Note that the interest rate on the Repo operations with CBO is 1.737 per cent for the period from October 17 to 23, while the discount rate on the treasury bills discounting facility with CBO is 2.487 per cent for the same period.
Treasury bills are short-term highly secured financial instruments issued by the CBO on behalf of the Government, which help the licensed commercial banks to gainfully invest their surplus funds, with added advantage of ready liquidity through discounting and repurchase facilities (Repo) offered by the Central Bank.
Furthermore, treasury bills promote the local money market by creating a benchmark yield curve for short-term interest rates.
Additionally, the government (MoF) may also resort to this instrument whenever felt necessary for financing its recurrent expenditures. — ONA
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