Egypt Offers 17 Billion Pounds of 7-Day Repos; Dollar Bonds Fall
The contracts, known as repos, allow government securities holders to sell them back to the North African country’s central bank to access funds for a week at 9.75 percent, according to the regulator’s data on Bloomberg. The facility was started in March 2011 to ease funding pressure at local banks as they increased holdings of government debt amid political unrest.
Yields on domestic debt have declined from record highs after the central bank lowered the local-currency reserve requirement for banks, making more cash available to buy government bonds and bills. The Finance Ministry sold five-year notes yesterday at an average yield of 16.54 percent, the lowest level in more than three months.
The rate on the 5.75 percent dollar bonds due 2020 advanced less than one basis point, or 0.01 percentage point, to 6.93 percent at 11:30 a.m. in Cairo, according to prices compiled by Bloomberg. The Egyptian pound was little changed at 6.0484 a dollar.
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