MUSCAT: The total allocation of government treasury bills this week hit RO 44.37 million. The 91-day bills accounted for the entire amount, with an average accepted price of RO 98.953 and a minimum accepted price of RO 98.930 per RO 100. The average discount rate stood at 4.19883 per cent, and the average yield was 4.24326 per cent.
The Central Bank of Oman (CBO) stated that the interest rate for repurchase operations (repo) with the CBO on these bills is 5.00 per cent, while the discount rate for treasury bills with the CBO is 5.50 per cent.
Treasury bills are short-term, guaranteed financial instruments issued by the Ministry of Finance. They serve as an investment avenue for licensed commercial banks. The CBO manages their issuance.
These bills offer quick liquidity through discounting with the CBO and through repo transactions. Licensed commercial banks can also conduct repo transactions on treasury bills within the interbank market. Furthermore, treasury bills help establish a benchmark for short-term interest rates in the local financial market and provide the government with a smooth and flexible way to finance some expenditures. — ONA
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