Government Treasury Bills: Treasury Bills are short-term financial instruments of the Government of the Sultanate of Oman to finance their day-to-day recurrent expenditures. CBO has been officially assigned as a fiscal agent by the government to perform the role of issue manager, paying agent, receiving agent, planning agent on all issues of T-bills on their behalf.
The treasury bills are highly secured financial instruments that help banks to gainfully invest their surplus funds with the added advantage of CBO providing ready liquidity through discounting and repurchase facilities. At present, the government issues these instruments in the maturity periods of 28-Days, 91-Days, and 182-Days through a competitive auction process.
Government Development Bonds: The Government Development Bonds are financial instruments issued by the Government of the Sultanate of Oman to provide an investment outlet for the surplus resources available in the economy and also to finance the capital expenditure of various developmental projects envisaged in the Five Year Development Plans, or/and to finance the fiscal deficit. The bonds are direct and unconditional obligations of the Government and hence they are considered as risk-free benchmarks for the system.
The bonds are long-term instruments that carry a maturity of more than one year, generally issued for maturities ranging from 2 to 10 years, and the interest is paid semi-annually. The bonds are also issued through a competitive auction process. The bidding of these bonds is opened for Residents & non- residents.
The secondary market trading of bonds can take place at the Muscat Securities Market at prices determined by the market forces of supply and demand.