Central Bank of Oman issues tenders worth OMR15m

Muscat: A tender of Government Treasury Bills, issue number 443 was held at the Central Bank of Oman (CBO) this week.
The total value of the allotted Treasury bills amounted to OMR15 million, for a maturity period of 91 days, from April 20, 2016 until July 20th, 2016.
The average accepted price reached 99.788 for every OMR100, the minimum accepted price arrived at 99.780 per OMR100 whereas the average discount rate and the average yield reached 0.85234 per cent and 0.85415 per cent respectively.
The Treasury Bills are short-term highly secured financial instruments issued by the CBO on behalf of the government, which helps the licenced commercial banks to gainfully invest their surplus funds, with added advantage of ready liquidity through discounting and repurchase facilities (Repo) offered by the CBO.
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.
The interest rate on the Repo operations with CBO is one per cent for the period from Apr 19, 2016 to 25 April, 2016, while the discount rate on the Treasury Bills Discounting Facility with CBO is 1.75 per cent, for the same period.