MUSCAT: The Sultanate of Oman has allocated RO 28.5 million in government treasury bills this week, according to the Central Bank of Oman (CBO).
The issuance included three maturities. The 28-day bills totalled RO 5 million, with an average and minimum accepted price of RO 99.700 per RO 100. These carried an average discount rate of 3.91071 per cent and an average yield of 3.92248 per cent.
The 91-day bills were valued at RO 2.5 million, achieving an average accepted price of RO 98.944 and a minimum accepted price of RO 98.940 per RO 100. The average discount rate stood at 4.23560 per cent, while the average yield reached 4.28081 per cent.
The largest allocation was in 182-day bills, worth RO 21 million, with an average accepted price of RO 97.926 and a minimum accepted price of RO 97.925 per RO 100. These carried an average discount rate of 4.15901 per cent and an average yield of 4.24709 per cent.
The CBO stated that the interest rate on repurchase (repo) operations for these bills is 5.00 per cent, while the discount rate on treasury bills with the Central Bank is 5.50 per cent.
Treasury bills are short-term, government-backed financial instruments issued by the Ministry of Finance. Managed by the CBO, they serve as secure investment avenues for licensed commercial banks. The bills offer rapid liquidity through discounting with the CBO or via repo transactions, and they can also be traded between banks in the interbank market.
Beyond providing an investment option for banks, treasury bills play a key role in shaping short-term interest rate benchmarks in Oman’s financial market. They also give the government a flexible and efficient tool for financing specific expenditures when needed. — ONA
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