Central Bank of Oman issues tenders worth OMR67.5m

Muscat: A tender of Government Treasury Bills, issue number 446, was held at the Central Bank of Oman (CBO) this week.
The total value of the allotted Treasury Bills amounted to OMR67.5 million, for a maturity period of 91 days, from July 13 until next October 12, 2016.
The average accepted price reached 99.794 for every OMR100, while the minimum accepted price arrived at 99.785 per OMR100. Whereas the average discount rate and the average yield reached 0.82716 per cent and 0.82887 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 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.
The interest rate on the Repo operations with CBO is one per cent for the period from July 12, 2016 to July 18, 2016, while the discount rate on the Treasury Bills Discounting Facility with CBO is 1.75 per cent, for the same period.