By: Heba El-Kordy
Cairo – Mubasher: Yields on treasury bills (T-bills) sold in Sunday’s auction fell to the lowest level since August 2018, propelling the government to accept around EGP 2.7 billion.
Total proceeds from 91-day and 266-day T-bills amounted to EGP 19.7 billion, which is EGP 2.2 billion higher than the requested sum of EGP 17 billion, according to the Central Bank of Egypt (CBE).
The average yield of the 91-day notes reached 18.71%, marking an all-time low in five months, with EGP 8.5 billion in proceeds, the CBE highlighted.
The average yield of the 266-day notes stood at 19.27%, the lowest level since mid-August, with EGP 11.23 billion in proceeds, data showed.
On Sunday, the CBE announced the issuance of EGP 17 billion T-bills on behalf of the Ministry of Finance (MOF).
The issuance will be used to finance the budget deficit, the CBE said.
Egypt’s debt instruments, especially treasury bills, are attractive to foreign investors owing to their high yield. State-run banks are the largest holders of the government’s debt instruments.
Egypt aims to issue EGP 409.6 billion T-bills and EGP 101.6 billion bonds in fiscal year 2018/2019.
The CBE previously said that Egypt’s total foreign debt rose 2.3% quarter-on-quarter, or $1.8 billion, to $80.8 billion in the first quarter of FY17/18.
Translated by: Mai Ezz El-Din
