MUSCAT: A tender of Government Treasury Bills, issue number 59 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 84 million, for a maturity
period of 28 days, from today until July 11.
The average accepted price reached 99.878 for every RO 100 while the minimum accepted price arrived at 99.850 per RO 100. The average discount rate and the average yield reached 1.59144 per cent and 1.59340 per cent respectively. The interest rate on the Repo operations with CBO is 2.547 per cent for the period from June 12 to 18 while the discount rate on the Treasury Bills Discounting Facility with CBO is 3.297 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 CBO.
Furthermore, the Treasury Bills promote the local money market by creating a benchmark yield curve for short-term interest rates.
The government (MoF) may also resort to this instrument whenever felt necessary for financing its recurrent expenditures. — ONA
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