The Central Bank of Oman (CBO) recently raised OMR23.4 million by allotting treasury bills, with different maturity periods and values. The average accepted price, discount rate, and yield varied depending on the maturity period. For the treasury bills with a maturity period of 28 days and a value of OMR3.1 million, the average accepted price was RO 99.671 for every RO 100, with a minimum accepted price of RO 99.670 per RO 100. The average discount rate and yield were 4.28917% and 4.30333%, respectively.
For treasury bills with a maturity period of 182 days and a value of OMR7 million, the average accepted price was RO 97.686 for every RO 100, with a minimum accepted price of RO 97.680 per RO 100. The average discount rate and yield were 4.63985% and 4.74974%, respectively. On the other hand, treasury bills with a maturity period of 364 days and a value of OMR13.3 million had an average accepted price of RO 95.469 for every RO 100, with a minimum accepted price of RO 95.450 per RO 100. The average discount rate and yield were 4.54365% and 4.75945%, respectively.
Treasury Bills are short-term highly secured financial instruments issued by the Ministry of Finance, allowing licensed commercial banks to invest their surplus funds. The CBO serves as the Issue Manager and provides liquidity through discounting and repurchase facilities. The interest rate on the Repo operations with CBO is 5.50%, while the discount rate on the Treasury Bills Discounting Facility is 6.00%. These bills also help create a benchmark yield curve for short-term interest rates in the local money market and can be used by the Government to finance recurrent expenditures when needed.
