MUSCAT: Oman allocated RO 48.6 million in government treasury bills this week, with 91-day instruments accounting for the larger share, the Central Bank of Oman (CBO) said on Monday.
The allocation comprised RO 20 million in 28-day bills and RO 28.6 million in 91-day bills.
The 28-day bills had an average accepted price of RO 99.705 per RO 100 of face value, matching the minimum accepted price. The average discount rate stood at 3.84554 per cent, while the average yield was 3.85691 per cent.
For the 91-day bills, the average and minimum accepted prices were both RO 98.965 per RO 100 of face value. The average discount rate was 4.15137 per cent, with an average yield of 4.19479 per cent.
The CBO said the repurchase agreement rate applicable to the bills was 4.50 per cent, while the rate for its treasury bill discounting facility was 5.00 per cent.
Issued by the Ministry of Finance and managed by the central bank, treasury bills provide licensed commercial banks with a short-term investment instrument and offer the government a flexible means of financing expenditure.
Banks can obtain liquidity against the bills through central bank discounting or repurchase agreements. They can also use the instruments in repo transactions with other banks in the interbank market.
Treasury bills also serve as a benchmark for short-term interest rates in Oman’s financial market. — ONA
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