Tender Results of Government Treasury Bills worth OMR 113 Million Issued

Muscat: The total issuance of Government Treasury Bills amounted to OMR 113 million this week.

The value of the allotted Treasury bills amounted to OMR 50 million, for a maturity period of 28 days. The average accepted price reached OMR 99.600 for every OMR 100, and the minimum accepted price arrived at OMR 99.600 per OMR 100. The average discount rate and the average yield reached 5.21429% and 5.23523%, respectively.

The value of the allotted Treasury bills amounted to OMR 41 million, for a maturity period of 91 days. The average accepted price reached OMR 98.670 for every OMR 100, and the minimum accepted price arrived at OMR 98.665 per OMR 100. The average discount rate and the average yield reached 5.33413% and 5.40602%, respectively.

Meanwhile, the allotted treasury bills for a maturity period of 182 days, amounted to OMR 22 million. The average accepted price reached OMR 97.485 for every OMR 100, and the minimum accepted price arrived at OMR 97.485 for every OMR 100. The average discount rate and the average yield reached 5.04382% and 5.17394%, respectively.

The Treasury Bills are short-term highly secured financial instruments issued by the Ministry of Finance, and they provide licensed commercial banks the opportunity to invest their surplus funds. The Central Bank of Oman acts as the Issue Manager and provides the added advantage of ready liquidity through discounting and repurchase facilities (Repo).

It may be noted that the interest rate on the Repo operations with CBO is 6.00pc while the discount rate on the Treasury Bills Discounting Facility with CBO is 6.50pc.

Furthermore, the Treasury Bills promote the local money market by creating a benchmark yield curve for short-term interest rates.

Additionally, the Government may also resort to this instrument whenever felt neccessary for financing its recurrent expenditures.