Media Centre

Central Bank of Oman issues treasury bills worth $130mln

Muscat: The Central Bank of Oman (CBO) raised OMR50 million by a way of allotting treasury bills on Monday.

The value of the allotted Treasury bills amounted to OMR10 million, for a maturity period of 28

days. The average accepted price reached RO 99.635 for every RO 100, and the minimum

accepted price arrived at RO 99.635 per RO 100. The average discount rate and the average yield

reached 4.75804% and 4.77547%, respectively.

Whereas, the value of the allotted Treasury bills amounted to OMR18.06 million, for a maturity

period of 91 days. The average accepted price reached RO 98.769 for every RO 100, and the

minimum accepted price arrived at RO 98.765 per RO 100. The average discount rate and the

average yield reached 4.93914 % and 5.00071 %, respectively.

Whereas, the value of the allotted Treasury bills amounted to OMR21.94 million, for a maturity

period of 182 days. The average accepted price reached RO 97.522 for every RO 100, and the

minimum accepted price arrived at RO 97.520 per RO 100. The average discount rate and the

average yield reached 4.96906 % and 5.09530 %, respectively.

Treasury Bills are short-term highly secured financial instruments issued by the Ministry of

Finance, and they provide licensed commercial banks the opportunity to invest their surplus

funds. The Central Bank of Oman (CBO) acts as the Issue Manager and provides the added

advantage of ready liquidity through discounting and repurchase facilities (Repo).

It may be noted that the interest rate on the Repo operations with CBO is 6.00% while the

discount rate on the Treasury Bills Discounting Facility with CBO is 6.50%.

Furthermore, 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.