Latest news with #CBO
Observer
2 days ago
- Business
- Observer
RO 60 million bonds at 4.3% to attract investors
MUSCAT, JULY 15 The Government of the Sultanate of Oman, through the Central Bank of Oman (CBO), has announced the 75th issuance of Government Development Bonds (GDBs) worth RO 60 million, with an additional RO 30 million greenshoe option, to be auctioned on Tuesday, July 22, 2025. Carrying a competitive coupon rate of 4.3 per cent per annum, the bonds will mature in three years, on July 24, 2028, offering semi-annual interest payments. The first coupon will be disbursed on January 24, 2026, making this issuance an attractive vehicle for both income-focused investors and those seeking a safe, sovereign-backed opportunity. According to the CBO, this offering is open to all categories of investors, including both residents and non-residents, regardless of nationality, making it a potential magnet for regional and international capital. The bonds are fully backed by the Government of Oman and serve as unconditional obligations, providing investors with a high level of capital security. The auction aligns with the government's wider efforts to deepen local financial markets, promote financial inclusion, and offer diverse investment instruments in line with Oman Vision 2040 goals. With interest rates remaining volatile globally, Oman's offering at 4.3% is expected to garner keen interest amid a tightening international credit environment. 'This issuance sends a strong signal about the resilience and transparency of Oman's financial sector,' said a senior market analyst based in Muscat. 'Government Development Bonds are a preferred instrument for institutional investors looking for low-risk and stable returns.' The subscription window opens on Tuesday, July 15, 2025, and closes on Monday, July 21, 2025, allowing investors a six-day period to apply. Participation is facilitated through licensed commercial banks operating in the Sultanate, who will handle application submissions. The minimum investment required is RO 100, making it accessible to retail investors as well. Beyond attractive returns and safety, the bonds offer collateral advantages—they can be pledged as security for loans from licensed banks. Additionally, the bonds will be listed on the Muscat Stock Exchange (MSX), providing liquidity and a secondary market for early exits. To participate, investors must possess an MCD Investor Code, which can be obtained through the Muscat Clearing and Depository Company (MCD) website or the Oman Stock Exchange at least one day prior to the application deadline. Applicants must also provide a bank account registered with MCD to receive interest payments. The inclusion of a RO 30 million greenshoe option—an additional allotment in case of oversubscription—indicates confidence that market demand could exceed the initial offer. Previous GDB issuances in Oman have witnessed strong investor participation, especially from pension funds, corporates, and high-net-worth individuals seeking fixed-income opportunities. This 75th issuance comes at a time when Oman continues to focus on economic diversification, fiscal reform, and building investor trust in its capital markets. With steady yields, guaranteed government backing, and full tradability on the MSX, the GDBs are set to serve as a benchmark for financial instruments in the region.
CNBC
2 days ago
- Business
- CNBC
Trump's 'big beautiful' bill could add $3.4 trillion to federal deficits in the next 10 years—what it means for your wallet
President Donald Trump's "big beautiful" tax-and-spending bill, which he signed into law on July 4, is forecast to increase federal deficits by at least $3.4 trillion over the next decade, according to the Congressional Budget Office. That's on top of the gross federal debt, which has climbed to more than $36 trillion, up from about $23 trillion in early 2020 — an increase of over 50% in just five years, driven by pandemic relief, rising entitlement costs and persistent deficit spending. Federal debt held by the public has remained above 90% of GDP since 2020, the highest sustained level since World War II. With deficits projected to persist, that rate is expected to climb to nearly 118.5% of GDP by 2035, per CBO estimates. Debt at this level raises the risk of higher interest costs, slower growth and reduced budgetary flexibility, the agency warns. When the government runs a deficit, it raises funds by issuing Treasury bonds and other securities. As the debt grows, so do the interest payments required to service it. Interest payments have become a major drain on the federal budget, consuming more than 13% of all federal spending. By 2035, that share is projected to rise to 16.7%, or one-sixth of all federal spending, according to CBO estimates. That means less money for public priorities like infrastructure, education and emergency aid, and less flexibility to respond to the next recession or emergency. Persistent deficits create other economic risks, too. If government spending outpaces the economy's ability to produce goods and services, it can drive inflation higher. At the same time, issuing more Treasury bonds increases the supply in the market, which can lower their value and lead investors to demand higher yields. "To entice financial institutions, households and foreigners to hold more U.S. bonds and bills, the government will have to entice them with higher interest rates," Kris James Mitchener, professor of economics at Santa Clara University, tells CNBC Make It. As the national debt grows, consumers could face higher interest rates on credit cards, mortgages, auto loans and other types of borrowing. That's because persistent deficits can lead to concerns about inflation or fiscal discipline, which in turn push Treasury yields and interest rates higher. "If servicing the debt becomes unsustainable, consumers can expect to see higher interest rates across debt products and a slower economy overall," Elizabeth Renter, senior economist at NerdWallet, tells CNBC Make It. In that scenario, lawmakers may also be forced to cut spending on social programs or raise taxes, which could also directly impact household budgets. While rising debt and interest costs have raised concerns among economists and investors, the bond market itself has remained relatively calm in recent months. The yield on the 10-year Treasury note — a key benchmark for borrowing costs — is holding near 4.4%, only slightly higher than a year ago. And a $39 billion auction of 10-year notes last week drew strong demand, easing fears that investors might start backing away as deficits grow. That stability likely reflects continued global confidence in U.S. Treasuries, which are viewed as one of the safest investments in the world. Because of that trust, the effects of rising deficits may not be felt right away. But if that trust falters, borrowing costs could climb quickly. However, the timing of that turning point is anyone's guess. As Peter Boockvar, chief investment officer at Bleakley Advisory Group, put it July 7 on CNBC's Squawk Box: "It doesn't matter until it does." .
Zawya
2 days ago
- Business
- Zawya
Oman's central bank issues treasury bills worth 26.6mln
Muscat: Oman's central bank has issued treasury bills worth OMR10.25 million on Monday. The value of the allotted Treasury bills amounted to OMR10.25 million, for a maturity period of 91 days. The average accepted price reached OMR98.941 for every OMR100, and the minimum accepted price arrived at OMR98.930 per OMR100. The average discount rate and the average yield reached 4.24871% and 4.29421%, 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 5.00% while the discount rate on the Treasury Bills Discounting Facility with CBO is 5.50%. 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. © Muscat Media Group Provided by SyndiGate Media Inc. (
Leader Live
2 days ago
- Leader Live
Chester man found at Connah's Quay home in breach of CBO
Lee Kutryk, of Parkgate Road in Chester, was produced in custody at Wrexham Magistrates Court on Monday. The 30-year-old admitted breaching a criminal behaviour order (CBO) by attending High Street in Connah's Quay on Saturday (July 12). Prosecutor James Ashton told the court that the CBO was imposed in September 2019 and subsequently amended and extended last year to run until September 2027. It imposes a number of conditions upon the defendant, chiefly for the purposes of Monday's court hearing prohibiting Kutryk form entering Connah's Quay. On the day of the offence, police received a report that Kutryk had been seen in the area. Officers attended an address following information received and were told to "f*** off" by the occupant. But after gaining entry to the property, a search was carried out and ultimately, Kutryk was found under a pile of washing in the kitchen. He was arrested and taken to custody in Llay. Mr Ashton told the court Kutryk had breached the CBO seven times previously. Gary Harvey, defending, told the court his client's latest offending came shortly after he was released from custody on his last sentence. Following release, Mr Harvey said, he was placed in his temporary accommodation in Chester but didn't have his medication. Lee Kutryk (NWP) (Image: North Wales Police) "He had seizures," he explained. "And he had one on the morning of this incident. "Staff [at the accommodation] discussed an ambulance, but he went to his partner's address in Connah's Quay; he felt safer there and felt he'd be looked after better. "Someone told the police, who went there. "He was very compliant with officers and told them: "I know I shouldn't be here." Mr Harvey conceded his client's behaviour had constituted a deliberate breach of the CBO. MORE COURT NEWS Kutryk himself them interjected, telling the court: "I'm institutionalised. I want to go back to prison." The Magistrates agreed the breach had been "persistent" in nature and jailed the defendant for 18 months. Kutryk was ordered to pay £85 costs and a £154 victim surcharge.
Axios
3 days ago
- Business
- Axios
Floridians face SNAP cuts under Trump's new law
Around 102,000 Floridians are at risk of losing at least some food assistance due to President Trump's newly signed megabill, per estimates from the left-leaning Center on Policy and Budget Priorities. Why it matters: It's a historic cut to the social safety net, which Republicans claim will weed out waste, fraud and abuse. But experts warn the move could leave more people hungry and uninsured. The big picture: The Supplemental Nutrition Assistance Program (SNAP), often called food stamps, helps low-income families, seniors and people with disabilities buy groceries. Driving the news: The law raises the age range for SNAP work requirements from 18–54 to 18–64 and includes new conditions for parents of children 14 and older. It also ties part of SNAP funding to states' payment error rates, shifting some benefit costs to states with higher error rates. The Congressional Budget Office (CBO) estimates the bill would cut nutrition funding by about $186 billion through 2034. By the numbers: As of March 2025, more than 2.9 million Floridians were enrolled in SNAP, according to federal data. Zoom in: CBPP points to a CBO indication that more than 2 million people would be cut from SNAP under the work requirement provision.
