CBO Treasury Bills Tender Results

Muscat, A tender of Government Treasury Bills,

issue number 478, 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 RO 41 million, for a maturity period of 91

days, from 29 August 2018 until 28 November 2018. The average

accepted price reached 99.477 for every RO 100 while the minimum

accepted price arrived at 99.425 per RO 100. The average discount

rate and the average yield reached 2.09843% and 2.10948%

respectively.

Note that the interest rate on the Repo operations with CBO is

2.573% for the period from 28/8/2018 to 3/9/2018 while the discount

rate on the Treasury Bills Discounting Facility with CBO is 3.323% for

the same period.

Treasury Bills are short-term highly secured financial instruments

issued by the CBO on behalf of the Government, which help 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: Oman News Agency