MUSCAT: A tender of government treasury bills, issue number 125 was held at the Central Bank of Oman (CBO) this week. The results of the issue are as follows: the total value of the allotted Treasury bills amounted to RO 5 million, for a maturity period of 182 days, from today until October 24.
The average accepted price reached 99.100 for every RO 100 while the minimum accepted price arrived at 99.100 per RO 100. The average discount rate and the average yield reached 1.80495 per cent and 1.82134 per cent respectively. The interest rate on the Repo operations with the CBO is 2.397 per cent for the period from April 24 to 30 while the discount rate on the Treasury Bills Discounting Facility with the CBO is 3.147 per cent for the same period.
The 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 the added advantage of ready liquidity through discounting and repurchase facilities (Repo) offered by the Central Bank. Furthermore, the Treasury Bills promote the local money market by creating a benchmark yield curve for short-term interest rates. The MoF may also resort to this instrument whenever felt necessary for financing its recurrent expenditures. — ONA
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