Muscat: The total issuance of Government Treasury Bills this week stood at RO 45 million, with a significant portion of the allotment, amounting to RO 20.350 million, assigned for a maturity period of 28 days.
According to Oman News Agency, the average accepted price for the 28-day Treasury bills reached RO 99.695 for every RO 100, with the minimum accepted price also arriving at RO 99.695 per RO 100. The average discount rate and average yield for these bills were recorded at 3.97541% and 3.98757%, respectively.
For the 91-day Treasury bills, the value of the allotted bills amounted to RO 24.650 million. The average accepted price was RO 98.932 for every RO 100, with the minimum accepted price at RO 98.930 per RO 100. The average discount rate and average yield for these bills reached 4.28224% and 4.32845%, respectively.
Treasury Bills are highly secured short-term financial instruments issued by the Ministry of Finance. They provide licensed commercial banks the opportunity to invest their surplus funds, with the Central Bank of Oman (CBO) serving as the Issue Manager. The CBO offers added liquidity through discounting and repurchase facilities (Repo).
The interest rate on the Repo operations with CBO stands at 5.00%, while the discount rate on the Treasury Bills Discounting Facility with CBO is 5.50%. Treasury Bills play a role in promoting the local money market by creating a benchmark yield curve for short-term interest rates. Additionally, the Government may utilize this instrument as needed to finance its recurrent expenditures.
