Omani treasury bills total over $135mln

The Central Bank of Oman has announced that the total value of government treasury bills for this week amounts to RO 52 million.

In a statement, the bank detailed the breakdown of the bills issued across various maturity periods. The 28-day treasury bills amounted to RO 12.8 million, with an average accepted price of RO 99.680. The lowest accepted price was 99.680 for every RO100, while the average discount rate was 4.16939%, resulting in an average yield of 4.18277%.

Meanwhile, the value of the 91-day treasury bills reached RO 18.2 million, with an average accepted price of RO98.918. The lowest accepted price was 98.900 for every RO100, with an average discount rate of 4.33936% and an average yield of 4.38683%.

The largest portion of the issuance, RO 21 million, was allocated to the 182-day treasury bills, with an average accepted price of RO 97.780. The lowest accepted price was 97.750 for every RO 100, and the average discount rate stood at 4.45220%, resulting in an average yield of 4.55332%.

Additionally, the statement highlighted the current repo rate with the Central Bank of Oman on these bills, set at 5%. The discount rate for treasury bill facilities with the Central Bank is slightly higher, at 5.50%.

Treasury bills serve as a short-term, secure financial instrument issued by the Ministry of Finance, providing licensed commercial banks with investment opportunities. The Central Bank of Oman plays an integral role in managing the issuance of these bills.

These instruments are highly liquid, enabling rapid monetisation through discounting with the Central Bank of Oman or via repo transactions. Licensed commercial banks can also engage in repo transactions with each other in the interbank market. Furthermore, these treasury bills contribute to establishing a benchmark for short-term interest rates in the local financial market, offering the government a flexible tool to finance certain expenses.

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