The Central Bank of Oman (CBO) successfully raised OMR29.45 million (roughly $76.5 million) through the allotment of treasury bills.
The allotted treasury bills had a total value of OMR10 million and a maturity period of 28 days. The average accepted price for each OMR100 reached OMR99.590, while the minimum accepted price was OMR99.590 per OMR100. The average discount rate and yield stood at 5.34464 percent and 5.36665 percent, respectively.
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Additionally, treasury bills with a value of OMR19.45 million were allotted, with a maturity period of 91 days. The average accepted price per OMR100 was OMR98.660, and the minimum accepted price was OMR98.660 per OMR100. The average discount rate and yield were recorded at 5.37473 percent and 5.44772 percent, respectively.
Treasury bills, which are short-term and highly secure financial instruments issued by the Ministry of Finance, provide licensed commercial banks with an opportunity to invest their surplus funds. The CBO acts as the Issue Manager and offers the advantage of ready liquidity through discounting and repurchasz facilities (Repo).
It is worth noting that the interest rate on Repo operations with the CBO stands at 6.00 percent, while the discount rate on the Treasury Bills Discounting Facility with the CBO is 6.50 percent.
Furthermore, treasury bills play a crucial role in promoting the local money market by establishing a benchmark yield curve for short-term interest rates. Additionally, the government may utilize this instrument when necessary to finance its recurring expenditures.
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