The total issuance of Government Treasury bills in Oman amounted to OMR21.7 million ($56.4 million). The value of the allotted Treasury bills was OMR0.2 million, with a maturity period of 28 days. The average accepted price reached OMR99.700 for every OMR100, and the minimum accepted price arrived at OMR99.700 per OMR100. The average discount rate and the average yield stood at 3.91071 percent and 3.92248 percent, respectively.
In another instance, the value of the allotted Treasury bills reached OMR10.5 million, with a maturity period of 91 days. The average accepted price was OMR98.936 for every OMR100, while the minimum accepted price was OMR98.935 per OMR100. The average discount rate and the average yield were 4.26884 percent and 4.31476 percent, respectively.
For a maturity period of 182 days, the allotted Treasury bills amounted to OMR0.5 million. The average accepted price was OMR97.900 for every OMR100, with the minimum accepted price also at OMR97.900 per OMR100. The average discount rate and the average yield reached 4.21154 percent and 4.30188 percent, respectively.
The value of the allotted Treasury bills for a maturity period of 364 days was OMR10.5 million. The average accepted price stood at OMR95.798 for every OMR100, while the minimum accepted price arrived at OMR95.780 per OMR100. The average discount rate and the average yield reached 4.21393 percent and 4.39885 percent, respectively.
Read more: Oman government Treasury bills issuance reaches $101.4 millionÂ
What role do Treasury bills play?
Treasury bills are short-term, highly secured financial instruments issued by the Ministry of Finance, providing licensed commercial banks the opportunity to invest their surplus funds. The Central Bank of Oman (CBO) acts as the Issue Manager, offering the added advantage of ready liquidity through discounting and repurchase facilities (Repo).
It is important to note that the interest rate on Repo operations with CBO is 5.00 percent, while the discount rate on the Treasury Bills Discounting Facility with CBO is 5.50 percent.
Furthermore, Treasury bills contribute to the local money market by establishing a benchmark yield curve for short-term interest rates. Additionally, the Government may resort to this instrument whenever deemed necessary for financing its recurrent expenditures.
