The total Government Treasury Bill issuance in Oman reached OMR23 million ($59.7 million). The issued Treasury bills contained OMR0.6 million ($1.55 million) in value through a 28-day term. A total of OMR23 million grants allowed investors a price of OMR99.700 for every OMR100 they spent while the minimum accepted bid reached OMR99.700 per OMR100. The issued Government Treasury Bills achieved average rates of 3.91071 percent for discount rate and 3.92248 percent for yield.
The Treasury bills received allocation of OMR22.4 million with a 91-day maturity duration. Each OMR100 received an average accepted price of OMR98.950 whereas the minimum accepted price matched the OMR98.950 amount per OMR100. The surveyed rate of discount stood at 4.21154 percent alongside a yield of 4.25623 percent.
Understanding Treasury Bills
Licensed commercial banks have the chance to invest their excess funds through Treasury Bills which represent short-term secure financial instruments that the Ministry of Finance issues. The Central Bank of Oman functions as the Issue Manager to provide discounting and repurchase facilities (Repo) which lead to instant liquidity access to interested parties.
Read more: Oman Central Bank issues treasury bills worth $77.93 million
Interest rates on Repo operations
When dealing with CBO through Repo operations the interest rate stands at 5.00 percent yet the discount rate on Treasury Bills through CBO stands at 5.50 percent.
The implementation of Treasury Bills generates consequences for both the domestic money market sector as well as its related interest rates.
Through Treasury Bills the money market receives benefits from the development of a standard interest rate curve for short-term borrowing costs. The Government applies this financial instrument to fund its regular expenses whenever it chooses to.
