The Central Bank of Oman (CBO) on Tuesday secured 18 million Omani Rials through the allocation of treasury bills. The value of the allocated treasury bills includes 3 million Omani Rials for a maturity period of 28 days.
Treasury Bill Details
The average accepted price for every 100 Omani Rials reached 99.715 Rials, and the minimum accepted price also reached 99.715 Rials for every 100 Omani Rials. The average discount rate and average yield were recorded at 3.71518% and 3.72580%, respectively.
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Additionally, treasury bills worth 8 million Omani Rials for a maturity period of 91 days were also allocated. The average accepted price for these bills reached 98.975 Rials for every 100 Omani Rials, and the minimum accepted price was the same. The average discount rate and average yield for these bills were 4.11126% and 4.15384%, respectively.
The Role of Treasury Bills in the Financial Market
Furthermore, treasury bills worth 7 million Omani Rials for a maturity period of 182 days were also allocated. The average accepted price for these bills reached 98.000 Rials for every 100 Omani Rials, and the minimum accepted price was the same. The average discount rate and average yield were recorded at 4.01099% and 4.09285%, respectively.
Treasury bills are short-term, high-security financial instruments issued by the Ministry of Finance, allowing authorized commercial banks to invest their excess funds. The Central Bank of Oman acts as the issuing manager and provides immediate liquidity through discount and repurchase (Repo) facilities.
It is worth mentioning that the interest rate on Repo operations with the Central Bank of Oman is 4.5%, while the discount rate on treasury bill discount facilities with the Central Bank of Oman is 5%.
Additionally, treasury bills strengthen the local money market by creating a benchmark yield curve for short-term interest rates. The government can also use this tool whenever necessary to meet its current expenses.
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