MUSCAT: Oman allocated government treasury bills worth RO 19.7 million this week, comprising RO 16 million in 91-day bills and RO 3.7 million in 182-day bills, the Central Bank of Oman (CBO) said.
The 91-day bills had an average accepted price of RO 98.979 and a lowest accepted price of RO 98.975 per RO 100 of face value. The average discount rate was 4.09497 per cent, while the average yield stood at 4.13721 per cent.
The 182-day bills had an average accepted price of RO 98.016 and a lowest accepted price of RO 97.925 per RO 100 of face value. The average discount rate was 3.97847 per cent, with an average yield of 4.05905 per cent.
The CBO said its repurchase agreement rate for these bills was 4.50 per cent, while the rate for its treasury bill discount facility was 5.00 per cent.
Treasury bills are short-term government debt instruments issued by the Ministry of Finance, with the CBO managing their issuance. They provide investment opportunities for licensed commercial banks and help the government meet financing needs.
Banks can discount the bills with the CBO or use them in repurchase agreements with the central bank. Licensed commercial banks can also use treasury bills in repurchase transactions with one another in the interbank market.
These facilities support the bills’ liquidity, allowing banks to use their holdings to obtain short-term funding.
Treasury bill auctions also help establish a benchmark for short-term interest rates in the domestic financial market and provide the government with a flexible means of financing expenditure. — ONA
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