The Central Bank of Oman said in a statement that the total amount of government treasury bills distributed this week was RO 43.1 million.
MUSCAT : The allocation includes treasury bills with different maturity periods, providing investment opportunities for licensed commercial banks and contributing to the liquidity of the local financial market.
The value of the allotted Treasury bills amounted to RO 18.1 million, for a maturity period of 28 days. The average accepted price reached RO 99.685 for every RO 100, and the minimum accepted price arrived at RO 99.680 per RO 100. The average discount rate and the average yield reached 4.11237 percent and 4.12539 percent, respectively.
The value of the allotted Treasury bills amounted to RO 22 million for a maturity period of 91 days. The average accepted price reached RO 98.865 for every RO 100, and the minimum accepted price arrived at RO 98.865 per RO 100. The average discount rate and the average yield reached 4.55247 percent and 4.60474 percent, respectively.
The value of the 182-day maturity bills reached RO 3 million, with an average acceptable price of RO 97.720, and the lowest acceptable price of RO 97.720 per RO 100, while the average discount rate reached 4.57253 percent, and the average return reached 4.67921 percent.
The statement issued by the Central Bank of Oman indicated that the interest rate on repurchase operations with the Central Bank of Oman (repo) on these bills is 5.25 percent, while the discount rate with the Central Bank on treasury bill facilities is 5.75 percent.
Treasury bills are a short-term secured financial instrument issued by the Ministry of Finance to provide investment outlets for licensed commercial banks, with the Central Bank of Oman acting as the issuance manager for these bills.
Treasury bills have the feature of rapid liquidity by discounting them with the Central Bank of Oman, and by conducting repurchase (repo) transactions with the Central Bank as well. Licensed commercial banks can conduct repo transactions among themselves on treasury bills in the interbank market. In addition, this tool contributes to creating a guiding indicator for short-term interest rates for the local financial market, and the government can resort to it to finance some of its expenses in a smooth and flexible manner.
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