Muscat:The issuance of Government Treasury Bills has been finalized, amounting to a total of RO 39.4 million. This issuance includes Treasury bills with varying maturity periods and corresponding values.
According to Oman News Agency, the total value of allotted Treasury bills includes RO 22 million for a 28-day maturity period, with an average accepted price of RO 99.700 per RO 100. The average discount rate for this period is 3.91071%, and the average yield stands at 3.92248%.
Additionally, Treasury bills valued at RO 11.9 million were allotted for a 91-day maturity period. The average accepted price for these bills is RO 98.965 per RO 100, with an average discount rate of 4.15255% and an average yield of 4.19600%.
For the 182-day maturity period, Treasury bills worth RO 5.5 million were allotted. The average accepted price for these bills reached RO 97.916 per RO 100, with an average discount rate of 4.17872% and an average yield of 4.26765%.
Treasury Bills, issued by the Ministry of Finance, are short-term and highly secured financial instruments. They offer licensed commercial banks the opportunity to invest surplus funds, with the Central Bank of Oman (CBO) acting as the Issue Manager. The CBO provides added liquidity through discounting and repurchase facilities (Repo), with an interest rate of 4.50% for Repo operations and a 5.00% discount rate for the Treasury Bills Discounting Facility.
Furthermore, Treasury Bills play a crucial role in promoting the local money market by establishing a benchmark yield curve for short-term interest rates. The Government may also utilize this instrument to finance its recurrent expenditures when necessary.