RO 84m worth treasury bills issued

MUSCAT: A tender of government Treasury Bills, issue number 23, was held at the Central Bank of Oman this week. The total value of the allotted Treasury bills amounted to RO 84 million, for a maturity period of 28 days, from 25 January until 22 February, 2017. The average accepted price reached 99.967 for every RO 100, and the minimum accepted price arrived at 99.965 per RO 100. Whereas the average discount rate and the average yield reached 0.43375 per cent and 0.43389 per cent, respectively. The interest rate on the Repo operations with CBO is 1.271 per cent for the period from January 24 to January 30, 2017, while the discount rate on the Treasury Bills Discounting Facility with CBO is 2.021 per cent, for the same period.
The Treasury Bills are short-term highly secured financial instruments issued by the CBO on behalf of the Government, which helps 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