Muscat: A tender of Government Treasury Bills, Issue number 151, was held at the Central Bank of Oman (CBO) this week.
The results of the issue are as follows:
– The total value of the allotted Treasury bills amounted to RO 29 million, for a maturity period of 182 days, from 28 October 2020 until 28 April 2021.
– The average accepted price reached 99.723 for every RO100 while the minimum accepted price arrived at 99.550 per RO100.
– The average discount rate and the average yield reached 0.55497% and 0.55695%, respectively.
Note that the interest rate on the Repo operations with CBO is 0.5% while the discount rate on the Treasury Bills Discounting Facility with CBO is 1%.
What are Treasury Bills?
Treasury Bills are short-term highly secured financial instruments issued by the CBO on behalf of the Government, which help the licensed commercial banks gainfully invest their surplus funds, with the 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.