Oman’s central bank raised OMR95 million through the allotment of treasury bills on Monday, reflecting continued activity in the domestic money market.
Treasury bill allotments by maturity
Of the total amount, OMR3.2 million was allotted through 28-day treasury bills. Moreover, the average accepted price stood at OMR99.705 per OMR100, which also represented the minimum accepted price. As a result, the average discount rate reached 3.84554%, while the average yield amounted to 3.85691%.
Additionally, treasury bills worth OMR50 million were issued for a 91-day maturity. The average accepted price reached OMR99.039 per OMR100, whereas the minimum accepted price stood at OMR99.030 per OMR100. Consequently, the average discount rate and yield were recorded at 3.85456% and 3.89197%, respectively.
In addition, the central bank allotted OMR41.8 million in 182-day treasury bills. The average accepted price reached OMR98.077 per OMR100, while the minimum accepted price was OMR98.070 per OMR100. Accordingly, the average discount rate stood at 3.85722%, and the average yield reached 3.93286%.
Market role and liquidity framework
Treasury bills are short-term, highly secured financial instruments issued by the Ministry of Finance, and they provide licensed commercial banks with an avenue to invest surplus liquidity. Meanwhile, the central bank acts as the issue manager and supports market liquidity through discounting and repurchase facilities.
Furthermore, the interest rate on repo operations stands at 4.25%, while the discount rate on the treasury bills discounting facility is 4.75%. As a result, treasury bills continue to support local money market development by establishing a benchmark yield curve for short-term interest rates. Additionally, the government may utilise this instrument when necessary to finance recurrent expenditures.
