Treasury bills worth RO 12.8 m tendered

MUSCAT: A tender of government treasury bills, issue number 126, was held at the Central Bank of Oman (CBO) this week. The results of the issue are as follows: The total value of the allotted treasury bills amounted to RO 12.770, for a maturity period of 182 days, from today until November 21.
The average accepted price reached 98.906 for every RO 100 while the minimum accepted price arrived at 98.800 per RO 100. The average discount rate and the average yield reached 2.19454 per cent and 2.21917 per cent respectively.
The interest rate on the Repo operations with CBO is 2.461 per cent for the period from May 22 to 28 while the discount rate on the treasury bills discounting facility with CBO is 3.211 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 the added advantage of ready liquidity through discounting and repurchase facilities (Repo) offered by the CBO.
Furthermore, the 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