Average yields on Egypt’s 10-year treasury bonds jumped by nearly 100 basis points on Monday at the first auction of its kind since the central bank began loosening monetary policy.

 

The 10-year bond rose to 14.800 percent from 13.871 percent at the last auction on Feb. 12, central bank data showed on Monday. It had dropped from 14.732 percent on Jan. 30 to 13.871 as investors anticipated a rate cut.

 

“An upward correction ... had to happen, but the rate is still far below Aug. levels,” said Noaman Khalid, CI Capital Asset Management economist.

 

The 10-year bond was at 17.798 percent in August after the central bank hiked rates by 200 basis points.

 

The bank cut interest rates by 100 basis points in its monetary policy meeting on Feb. 15 after inflation rates hit their lowest levels in more than a year.

 

At a separate auction on Monday, the average yield on the five-year bond rose to 14.911 percent from 14.438 percent, central bank data showed.

 

Egypt had raised key interest rates by 700 basis points after it floated its currency in November 2016, encouraging foreigners to buy up its debt and collecting more than $20 billion from foreign investors in treasury purchases.