Central Bank of Oman issues tenders worth OMR5m

Muscat: A tender of government treasury bills, issue number 002, was held at the Central Bank of Oman (CBO) on Tuesday.
The total value of the allotted treasury bills amounted to OMR5 million, for a maturity period of 28 days, from March 2 till March 30, 2016.
The average accepted price reached 99.950 for every OMR100 while the minimum accepted price arrived at 99.950 per OMR100. The average discount rate and the average yield reached 0.65179 per cent and 0.65211 per cent respectively.
The interest rate on the Repo operations with CBO is one per cent for the period from March 1, 2016 to March 7, 2016 while the discount rate on the treasury bills discounting facility with CBO is 1.75 per cent for the same period.
Treasury Bills are short-term highly secured financial instruments issued by the CBO on behalf of the Government, which helps 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.