CBO issues treasury bills worth OMR10m

Muscat: Oman’s central bank raised OMR10 million by way of allotting treasury bills this week.
The treasury bills are for a maturity period of 182 days, from Wednesday (September 12, 2018) until March 13, 2019.
The average accepted price reached 98.795 for every OMR100, and the minimum accepted price arrived at 98.790 per OMR100. Whereas the average discount rate and the average yield reached 2.41662 per cent and 2.44610 per cent, respectively.
The interest rate on the Repo operations with CBO is 2.639 per cent for the period from September 11, 2018 to September 17, 2018 while the discount rate on the Treasury Bills Discounting Facility with CBO is 3.389 per cent, for the same period.
The treasury bills are short-term highly secured financial instruments issued by the CBO on behalf of the Government, which helps the licensed commercial banks to gainfully invest their surplus funds, with added advantage of ready liquidity through discounting and repurchase facilities (Repo) offered by the Central Bank.
Further, treasury bills promote the local money market by creating a benchmark yield curve for short-term interest rates. Also, the Government (MOF) may also resort to this instrument whenever felt necessary for financing its recurrent expenditures.