The Central Bank of Oman (CBO) recently raised OMR35 million through the allotment of treasury bills, with different maturity periods ranging from 91 days to 364 days. The value of the allotted Treasury bills totaled RO 30.63 million for a 91-day maturity period, with an average accepted price of RO 98.763 for every RO 100. The minimum accepted price was RO 98.750, and the average discount rate and yield were 4.96136% and 5.02350%, respectively. For Treasury bills with a maturity period of 182 days, the value amounted to RO 4 million, with an average accepted price of RO 97.485 per RO 100 and an average discount rate and yield of 5.04382% and 5.17394%, respectively.
Additionally, Treasury bills with a maturity period of 364 days amounted to RO 0.37 million, with an average accepted price of RO 95.295 per RO 100. The average discount rate and yield for these bills were 4.71793% and 4.95086%, respectively. These Treasury bills are short-term financial instruments issued by the Ministry of Finance, providing licensed commercial banks with an opportunity to invest their surplus funds. The CBO acts as the Issue Manager and offers liquidity through discounting and repurchase facilities. The interest rate on Repo operations with the CBO is 6.00%, while the discount rate on the Treasury Bills Discounting Facility is 6.50%.
These Treasury bills play a significant role in promoting the local money market by creating a benchmark yield curve for short-term interest rates. Additionally, the Government may utilize this financial instrument as needed to finance recurrent expenditures. Overall, the recent allotment of Treasury bills by the CBO highlights the importance of these secure investments in the Omani financial market, providing opportunities for banks and the Government to manage their funds effectively and promote liquidity in the market.
