Egypt’s T-Bill Fund Raiser Falls Short; 3-Month Yield Jumps
Egypt fell 11 percent short of raising the 6.5 billion Egyptian pounds ($1.1 billion) it targeted at an auction of treasury bills today as the average yield on three-month notes jumped the most in two months.
The Ministry of Finance sold 3 billion pounds in three- month securities, the highest amount since Feb. 13, according to Bloomberg data. It raised 2.79 billion pounds from the sale of nine-month notes, less than the 3.5 billion it sought, according to Central Bank of Egypt data on Bloomberg.
Egypt has increasingly turned to short-term borrowing to meet its funding needs to avoid paying high yields in the long term after a revolt overthrew the government in February. The average yield on the three-month securities jumped 16 basis points, the most since an auction on April 20, to 11.761 percent. The yield on nine-month bills gained 4 basis points to 12.944 percent.
The yield on Egypt’s 5.75 percent 10-year dollar bond fell less than 1 basis point, or less than 0.01 percentage point, to 5.71 percent on June 17. The pound was little changed at 5.944 per dollar.
To contact the reporter on this story: Ahmed A Namatalla in Cairo at anamatalla@bloomberg.net
To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net
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