RO 13 Million Allotted in Treasury Bills: Implications for Investors and Businesses in Oman
MUSCAT: The total value of government Treasury bills allocated this week reached RO 13 million.
For the 28-day maturity bills, RO 5 million was allotted, with an average accepted price of 99.710 per RO 100 and a lowest accepted price of 99.710 per RO 100. The average discount rate was recorded at 3.78036%, while the average yield stood at 3.79135%.
In the case of the 91-day maturity bills, RO 8 million was allocated, with an average accepted price of 99.053 per RO 100 and a lowest accepted price of 99.040 per RO 100. The average discount rate for these bills was 3.80041%, with an average yield of 3.83677%.
Treasury bills are short-term, guaranteed financial instruments issued by the Ministry of Finance, designed to provide investment options for licensed commercial banks. The Central Bank of Oman manages the issuance of these bills.
Additionally, the interest rate on repurchase operations (repo) related to these bills stands at 4.25%, while the discount rate on Treasury bill facilities with the Central Bank is 4.75%.
These Treasury bills offer quick liquidity through discounting with the Central Bank of Oman, as well as via repo transactions. Licensed commercial banks are also permitted to engage in repo operations among themselves in the interbank market using Treasury bills. Moreover, this financial instrument serves as a benchmark for short-term interest rates in the local market and enables the government to finance its expenditures efficiently and flexibly. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
The recent allotment of RO 13 million in government Treasury bills signals a strategic shift in Oman’s monetary policy, making short-term investment channels more accessible for commercial banks. This move creates opportunities for liquidity and potentially attractive yields for investors, particularly as discount rates remain favorable. Smart investors and entrepreneurs should evaluate this environment, considering ways to leverage these financial instruments to enhance their portfolio strategy amidst evolving market conditions.
