Business

Oman allocates RO 53.05 million in treasury bills

Treasury bills serve as a secure investment option for licensed commercial banks.
 
Treasury bills serve as a secure investment option for licensed commercial banks.
MUSCAT: The total value of government treasury bills issued this week reached RO 53.05 million, offering short-term investment opportunities for commercial banks while supporting liquidity in the financial market.

The 28-day treasury bills were issued at a total value of RO 150,000, with an average accepted price of RO 99.700 per RO 100, reflecting a discount rate of 3.91% and a yield of 3.92%.

For the 91-day treasury bills, the allocated amount stood at RO 36.4 million, with an average accepted price of RO 98.975 per RO 100, an average discount rate of 4.11% and a yield of 4.16%.

Meanwhile, 182-day treasury bills were issued at RO 16.5 million, with an average accepted price of RO 97.845 per RO 100, a discount rate of 4.32% and a yield of 4.42%.

Treasury bills, issued by the Ministry of Finance and managed by the Central Bank of Oman (CBO), serve as a secure investment option for licensed commercial banks. They also act as a key monetary tool, influencing short-term interest rates and enhancing market liquidity.

The interest rate on repurchase (repo) operations with the CBO for these bills stands at 5.00%, while the discount rate on treasury bills is 5.50%.

Treasury bills offer quick liquidity through discounting at the CBO and repo transactions between banks in the inter-bank market.

In addition to providing an investment channel, treasury bills help the government manage short-term funding needs efficiently while contributing to financial market stability.— ONA