Tender Results of Government Treasury Bills worth OMR 75 Million Issued

Muscat: The Central Bank of Oman (CBO) pointed out that the total issuance of Government Treasury Bills amounted to OMR 75 million.

The value of the allotted Treasury bills amounted to OMR 30 million, for a maturity period of 28 days. The average accepted price reached OMR 99.605 for every OMR 100, and the minimum accepted price arrived at OMR 99.605 per OMR 100. The average discount rate and the average yield reached 5.14911% and 5.16953%, respectively.

The value of the allotted Treasury Bills amounted to OMR 20 million, for a maturity period of 91 days. The average accepted price reached OMR 98.680 for every OMR 100, and the minimum accepted price arrived at OMR 98.680 per OMR 100. The average discount rate and the average yield reached 5.29451% and 5.36533%, respectively.

On the other hand, the value of the allotted Treasury Bills amounted to OMR 25 million, for a maturity period of 364 days. The average accepted price reached OMR 95.045 for every OMR 100, and the minimum accepted price arrived at OMR 95.045 per OMR 100. The average discount rate and the average yield reached 4.96861% and 5.22764%, 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 6.00% while the discount rate on the Treasury Bills Discounting Facility with CBO is 6.50%. 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 necessary for financing its recurrent expenditures.