Oman announces treasury bill tender results

A tender of Government Treasury Bills, issue number 456, was held at the Central Bank of Oman (CBO) this week.

The results of issue are as follows: the total value of the allotted Treasury bills amounted to OMR65 million, for a maturity period of 91 days from 3rd May until 2nd August 2017. The average accepted price reached 99.732 for every OMR100 while the minimum accepted price arrived at 99.730 per OMR100. The average discount rate and the average yield reached 1.07680 per cent and 1.07970 per cent respectively. 

Note that the interest rate on the Repo operations with CBO is 1.495 per cent for the period from 02/05/2017 to 08/05/2017 while the discount rate on the Treasury Bills Discounting Facility with CBO is 2.245 per cent, for the same period

Treasury Bills are short-term highly secured financial instruments issued by the Central Bank of Oman 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.

Furthermore, Treasury Bills promote the local money market by creating a benchmark yield curve for short-term interest rates. Additionally, the Government (MOF) may also resort to this instrument whenever felt necessary for financing its recurrent expenditures.

Source: Timesofoman