(MENAFN- Muscat Daily) Muscat- A tender of government treasury bills, issue No 44, was held at the Central Bank of Oman (CBO) this week.
Total value of allotted treasury bills amounted to RO72mn for a maturity period of 28 days (from November 1 until November 29), according to an Oman News Agency report.
Average accepted price reached RO99.923 for each RO100 bill, while minimum accepted price arrived at RO99.92. Average discount rate and average yield reached 1.0093 per cent and 1.0101 per cent, respectively.
Interest rate on the CBO's repo operations is 1.742 per cent for the period from October 31 to November 6, while the discount rate on treasury bills discounting facility with the CBO is 2.492 per cent for the same period.
Treasury bills are short-term highly secured financial instruments issued by the CBO on behalf of the government. The instruments help the licensed commercial banks to invest their surplus funds for positive returns with an added advantage of ready liquidity through discounting and repurchase facilities offered by the CBO.
Government's 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.
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