Treasury bills worth OMR65 million with a maturity of 28 days have issued at the Central Bank of Oman.

A tender of Government Treasury Bills, issue number 31, 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 OMR65 million, for a maturity period of 28 days, from 12th April until 10th May 2017. The average accepted price reached 99.951 while the minimum accepted price arrived at 99.945 per OMR100. The average discount rate and the average yield reached 0.64176 per cent and 0.64208 per cent respectively.

Note that the interest rate on the Repo operations with CBO is 1.488 per cent for the period from 11/04/2017 to 17/04/2017 while the discount rate on the Treasury Bills Discounting Facility with CBO is 2.238 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.

Source: Timesofoman