CBO Issues RO 9.7 Million in Treasury Bills: What It Means for Investors and Business Financing in Oman
MUSCAT: The Central Bank of Oman (CBO) has announced that the total value of government treasury bills allocated this week reached RO 9.7 million.
According to the CBO statement, RO 5.2 million was allocated in 28-day treasury bills at an average accepted price of RO 99.712 per RO 100. The lowest accepted price recorded was RO 99.710, with an average discount rate of 3.76030% and an average yield of 3.77119%.
For 91-day treasury bills, allocations amounted to RO 3 million, with an average accepted price of RO 99.803 and a minimum accepted price of RO 99.503 per RO 100. The average discount rate stood at 3.86058%, while the average yield reached 3.89810%.
Moreover, RO 1.5 million worth of 182-day treasury bills were issued at an average accepted price of RO 89.200 per RO 100, with the lowest accepted price matching that figure. The average discount rate was 3.60989%, and the average yield came to 3.67606%.
The CBO also highlighted that the interest rate on repurchase agreements (repos) for these treasury bills is set at 4.25%, while the discount rate on treasury bill facilities is 4.75%.
Treasury bills are short-term government-backed instruments issued by the Ministry of Finance to offer investment opportunities to licensed commercial banks, with the Central Bank of Oman acting as the issuing agent. These bills provide high liquidity through discounting and repo operations with the CBO and can be traded among banks in the interbank market. Additionally, treasury bills help establish a benchmark for short-term interest rates and allow the government to finance expenditures flexibly. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
The recent treasury bill issuance with yields around 3.7% to 3.9% signals stable short-term government borrowing costs, presenting a relatively low-risk investment avenue for Omani banks and investors. For businesses, this reflects a cautious fiscal environment where government financing remains flexible but conservative. Smart investors should monitor these rates closely as they set benchmarks for broader credit costs, guiding decisions on borrowing, lending, and portfolio diversification in Oman’s evolving financial landscape.
