Egypt t-bill yields continue to fall on foreign aid pledges

Reuters , Sunday 21 Apr 2013

Average yields on 91-day Egyptian treasury bills fall to 13.317 percent; yields on 273-day t-bills to 14.201 percent

 

Yields on Egyptian treasury bills fell at an auction on Sunday for LE6 billion (roughly $869 million) worth of t-bills. It was the second weekly decline since Qatar and Libyaagreed on 10 April to lend Cairo a combined total of $5 billion to support Egypt's state budget.

In recent months, Egypt has been running down its foreign reserves and borrowing from foreign lenders to support its currency and plug a widening budget deficit.

The Egyptian government is seeking funds to avert social unrest over fuel shortages and food price increases ahead of parliamentary elections slated for later this year.

"The aid gives the economy time to breathe in the near term and reflects positively on sentiment for now," said Youssef Kamel, a fixed income analyst at Cairo-based finance company Rasmala.

Average yields on 91-day Egyptian treasury bills dropped to 13.317 percent from 13.707 percent at last week's auction, Egypt's central bank said.

Yields on 273-day treasury bills, meanwhile, fell to 14.201 percent from 14.639 percent for the same period.

Qatar has said it would buy $3 billion in Egyptian bonds and Libya has agreed to extend Egypt a five-year interest-free loan of $2 billion.

Search Keywords:
Short link: