Treasury bill issuance reaches RO 61 million

MUSCAT: The total value of government treasury bills allocated this week reached RO 61.4 million, according to the Central Bank of Oman (CBO).
In a statement issued on Monday, the CBO said the treasury bills have a maturity period of 91 days. The average accepted price stood at RO 99.047 per RO 100, while the lowest accepted price was RO 99.040 per RO 100.
The average discount rate was 3.8235 per cent and the average yield reached 3.8603 per cent.
The CBO noted that the interest rate on repurchase agreements (repos) linked to these treasury bills is 4.25 per cent, while the discount rate on treasury bill facilities stands at 4.75 per cent.
Treasury bills are short-term government-backed financial instruments issued by the Ministry of Finance, with the Central Bank of Oman acting as the issuing agent. They are designed primarily to provide investment opportunities for licensed commercial banks operating in the Sultanate of Oman.
The instruments offer a high degree of liquidity, as they can be discounted with the Central Bank or used in repurchase agreements. Commercial banks may also use treasury bills in interbank repo transactions, helping to support liquidity management within the banking sector.
In addition to providing secure short-term investment options, treasury bills play an important role in establishing benchmark short-term interest rates in the domestic financial market. They also provide the government with a flexible mechanism for managing and financing expenditure requirements. — ONA