Central Bank of Oman allocates RO 32.8 million in weekly treasury bills to strengthen short-term liquidity

Muscat: According to the CBO statement, the weekly auction included allocations across 28-day, 182-day, and 364-day treasury bills. The largest portion—RO 32 million—was issued for the 182-day tenure, with an average acceptable price of RO 97.851 and a lowest acceptable price of RO 97.850 per RO 100. The average discount rate stood at 4.31056 percent, yielding an average return of 4.40525 percent.

The 28-day treasury bills were allocated a total value of RO 300,000. These were priced at an average and minimum of RO 99.750, with a discount rate of 3.25893 percent and an average return of 3.26710 percent.

Meanwhile, the 364-day bills recorded an allocation of RO 500,000, at an average and lowest acceptable price of RO 95.850. The discount rate and average return were 4.16140 percent and 4.34158 percent, respectively.
The CBO clarified that the repo rate on these bills stands at 5.00 percent, while the discount rate on treasury bill facilities is 5.50 percent.

Treasury bills are short-term, government-backed instruments issued by the Ministry of Finance and managed by the CBO. They offer licensed commercial banks a secure investment avenue and can be quickly liquidated via the Central Bank’s repo operations or interbank market transactions. Additionally, they help set a benchmark for short-term interest rates and assist the government in meeting its funding needs in a streamlined manner.