Muscat: A tender of Government Treasury Bills, issue number 115, worth RO65.6mn was announced this week.

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 (Repo).

The results of the said issue are as follows: the total value of the allotted Treasury bills amounted to RO65.6mn, for a maturity period of 28 days, from 7th April 2021 until 5th May 2021. The average accepted price reached 99.950 for every RO100, and the minimum accepted price arrived at 99.950 per RO100.

The average discount rate and the average yield reached 0.65179 per cent and 0.65211 per cent, respectively.

It may be noted that the interest rate on the Repo operations with CBO is 0.5 per cent while the discount rate on the Treasury Bills Discounting Facility with CBO is 0.75 per cent.

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 whenever felt necessary for financing its recurrent expenditures.