A tender of Government Treasury Bills, issue number 164, worth RO10mn was issued 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 RO10mn, for a maturity period of 182 days, from August 24, 2022, until February 22, 2023.

The average accepted price reached RO98.330 for every RO100, and the minimum accepted price arrived at RO98.305 per RO100.

The average discount rate and the average yield reached 3.34918 per cent and 3.40607 per cent, respectively.

It may be noted that the interest rate on the Repo operations with CBO is 3.00 per cent while the discount rate on the Treasury Bills Discounting Facility with CBO is 3.5 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.