Muscat
The total value of government treasury bills allocated for this week reached 46 million Omani Rials. The value of the bills allocated for a maturity period of 28 days was 4 million Omani Rials, with an accepted average price of 99.705 Omani Rials, and the lowest accepted price was 99.705 for every 100 Omani Rials. The average discount rate was 3.84554%, and the average yield was 3.85691%.
Meanwhile, the value of the bills allocated for a maturity period of 91 days was 3 million Omani Rials, with an accepted average price of 98.970 Omani Rials, and the lowest accepted price was 98.970 for every 100 Omani Rials. The average discount rate was 4.13132%, and the average yield was 4.17431%.
Additionally, the value of the bills allocated for a maturity period of 182 days was 36 million Omani Rials, with an accepted average price of 97.842 Omani Rials, and the lowest accepted price was 97.840 for every 100 Omani Rials. The average discount rate was 4.32713%, and the average yield was 4.42256%.
On the other hand, the value of the bills allocated for a maturity period of 364 days was 3 million Omani Rials, with an accepted average price of 95.917 Omani Rials, and the lowest accepted price was 95.880 for every 100 Omani Rials. The average discount rate was 4.09455%, and the average yield was 4.26887%.
The statement issued by the Central Bank of Oman indicated that the interest rate on repurchase agreements (repo) with the Central Bank of Oman for these bills is 5.00%, while the discount rate with the Central Bank for treasury bill facilities is 5.50%.
Treasury bills are a secure short-term financial instrument issued by the Ministry of Finance to provide investment outlets for licensed commercial banks, with the Central Bank of Oman acting as the issuance manager for these bills.
Treasury bills have the advantage of quick liquidity through discounting with the Central Bank of Oman and through conducting repo transactions with the Central Bank as well. Licensed commercial banks can also conduct repo transactions among themselves on treasury bills in the interbank market. Additionally, this instrument contributes to establishing a benchmark for short-term interest rates in the local financial market, and the government can resort to it for smooth and flexible financing of some expenditures.
