Muscat: The Central Bank of Oman (CBO) raised OMR10.9 million by way of allotting treasury bills on Tuesday.

The treasury bills are for a maturity period of 91 days, from December 14 until March 15, 2023.

The average accepted price reached OMR98.951 for every OMR100, and the minimum accepted price arrived at OMR98.890 per OMR100. The average discount rate and the average yield reached 4.20841 per cent and 4.25311 per cent, respectively.

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).

It may be noted that the interest rate on the Repo operations with CBO is 4.50 per cent while the discount rate on the Treasury Bills Discounting Facility with CBO is 5.00 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.