Muscat: The total issuance of Government Treasury Bills amounted to RO 38.1 million. The value of the allotted Treasury bills reached RO 23.6 million, for a maturity period of 91 days. The average accepted price was RO 99.042 for every RO 100, with the minimum accepted price arriving at RO 99.040 per RO 100. The average discount rate and average yield were 3.84103% and 3.87818%, respectively.
According to Oman News Agency, the value of the allotted Treasury bills for a maturity period of 182 days amounted to RO 14.5 million. The average accepted price was RO 98.072 for every RO 100, with the minimum accepted price at RO 98.065 per RO 100. The average discount rate and the average yield for this period were 3.86611% and 3.94211%, respectively.
Treasury Bills are short-term highly secured financial instruments issued by the Ministry of Finance, offering licensed commercial banks an opportunity to invest their surplus funds. The Central Bank of Oman (CBO) acts as the Issue Manager, providing added advantages such as ready liquidity through discounting and repurchase facilities (Repo).
The interest rate on the Repo operations with CBO is 4.25%, while the discount rate on the Treasury Bills Discounting Facility with CBO is 4.75%. Furthermore, Treasury Bills promote the local money market by establishing a benchmark yield curve for short-term interest rates. Additionally, the Government may use this instrument to finance its recurrent expenditures when necessary.