After falls, yields on 91, 266-day Egypt bills edge up

Reuters, Sunday 30 Sep 2012

Recent downturn in treasury bill yields stalls but analyst says its too early to talk about a revival

Average yields on 91-day and 266-day treasury bills sold at auction on Sunday edged higher, interrupting a downward trend of recent weeks, and the Finance Ministry sold fewer 266-day bills than it had offered, central bank data showed.

One analyst said the relatively swift fall in yields since the middle of the year made a small correction on the upside unsurprising but said it was too early to talk about a reversal in the broader trend of falling yields.
Egypt, battered by months of political turmoil, has been seeking to lift investor confidence in its economy. Investors have been encouraged by the start of talks for a $4.8 billion International Monetary Fund loan, aid from Gulf states and a campaign by the new government to outline a reform programme.
The ministry sold LE1 billion ($164.02 million) of 91-day bills at an average yield of 12.941 per cent, compared to a yield of 12.396 per cent on 91-day bills issued on 25 September.
The ministry sold 266-day bills worth LE2 billion with an average yield of 13.547 per cent, compared to 13.354 per cent on 266-bills issued on 25 September. The ministry had offered bills worth LE3.5 billion.
The central bank offers the T-bills on behalf of the Finance Ministry.
The average yield on 91-day bills have been falling from levels of more than 14.5 per cent in the middle of year, while average yields at auctions of 266-day bills had risen to almost 16 per cent in June before they began to slide.
"I think next week's auction may provide some insight as to where we may be headed," said one fixed-income analyst. "The pace of the drop in yields was quite fast, so I wouldn't rule out any corrections - but I don't expect a reversal in the trend at this point." 
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