MUSCAT: A tender of Government Treasury Bills, issue number 478, was held at the Central Bank of Oman (CBO) this week. The results of issue are as follows: the total value of the allotted Treasury bills amounted to RO 41 million, for a maturity period of 91 days, from August 29 until November 28. The average accepted price reached 99.477 for every RO 100 while the minimum accepted price arrived at 99.425 per RO 100. The average discount rate and the average yield reached 2.09843 per cent and 2.10948 per cent respectively. Note that the interest rate on the Repo operations with CBO is 2.573 per cent for the period from August 28 to September 3 while the discount rate on the Treasury Bills Discounting Facility with CBO is 3.323 per cent for the same period.
Treasury Bills are short-term highly secured financial instruments issued by the CBO on behalf of the government, which help the licensed commercial banks to gainfully invest their surplus funds, with added advantage of ready liquidity through discounting and repurchase facilities (Repo) offered by the Central Bank. Furthermore, Treasury Bills promote the local money market by creating a benchmark yield curve for short-term interest rates. Additionally, the Government (MoF) may also resort to this instrument whenever felt necessary for financing its recurrent expenditures. — ONA