MUSCAT: The total value of government Treasury bills allotted for this week reached RO 13 million.
The value of bills allotted for a 28-day maturity stood at RO 5 million, at an average accepted price of 99.710 per RO 100, with the lowest accepted price also 99.710 per RO 100. The average discount rate was 3.78036 per cent, while the average yield was 3.79135 per cent.
The value of bills allotted for a 91-day maturity amounted to RO 8 million, at an average accepted price of 99.053 per RO 100, with the lowest accepted price at 99.040 per RO 100. The average discount rate was 3.80041 per cent, while the average yield was 3.83677 per cent.
Treasury bills are a short-term, guaranteed financial instrument issued by the Ministry of Finance to provide investment channels for licensed commercial banks. The Central Bank of Oman acts as the issue manager for these bills.
The statement noted that the interest rate on repurchase operations (repo) with the Central Bank of Oman on these bills is 4.25 per cent, while the discount rate on Treasury bill facilities with the Central Bank stands at 4.75 per cent.
Treasury bills are also characterised by quick liquidity through discounting with the Central Bank of Oman, as well as through repo transactions with the Central Bank.
Licensed commercial banks can also conduct repo operations among themselves using Treasury bills in the interbank market. In addition, this instrument helps establish a benchmark indicator for short-term interest rates in the local financial market and enables the government to finance part of its expenditures in a smooth and flexible manner. — ONA
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