Muscat: A new tender announced by the government this week, heralded the issue of treasury bills worth RO 150 million.

The tender has been issued for a period of 91 days starting 23rd June 2021 to 22nd September 2021. For the said bills, worth a total of RO 150 million – the average accepted price is RO 99.806 per RO 100 and the minimum accepted price has been set to RO 99.805 per RO 100. The average discount rate is 0.77679% while the average yield rate is0.77830%

The interest rate on the repurchasing (repo) operations with CBO is 0.5% while the discount rate on the Treasury Bills Discounting Facility with CBO is 0.75%.

Treasury Bills are short-term highly secured financial instruments issued by the Ministry of Finance, and they provide licensed commercial banks the opportunity to invest their surplus funds. The Central Bank of Oman (CBO) acts as the Issue Manager and provides the added advantage of ready liquidity through discounting and repurchase facilities

Furthermore, Treasury Bills promote the local money market by creating a benchmark yield curve for short-term interest rates. Additionally, the Government may also resort to this instrument when it deems necessary, for financing its recurrent expenditures.