Egypt Offers T-Bills After Deficit-Cut Plan; Dollar Bonds Gain
The North African country will seek bids for six- and 12- month securities valued at 3 billion pounds and 3.5 billion pounds, respectively, according to central bank data on Bloomberg. The average yield at last week’s sale of the six- month notes climbed to 15.087 percent, the highest level since Bloomberg started tracking the data in 2006. The one-year rate increased to 15.85 percent.
The Cabinet said yesterday it approved a budget for the year that starts in July that cuts the deficit to 7.6 percent of gross domestic product compared with its 8.6 percent target this year. Egypt is seeking economic growth of 4 to 4.5 percent next year, Planning Minister Fayza Aboulnaga said May 14. The budget still has to be approved by parliament and the military council that took over executive powers after the ouster of President Hosni Mubarak last year.
Egypt’s economy expanded 0.4 percent in the three months through Dec. 31, compared with growth of 0.2 percent in the previous quarter and 5.6 percent a year earlier, according to the most recent official figures.
The yield on the Egypt’s 5.75 percent dollar bonds due in 2020 fell less than one basis point, or 0.01 of a percentage point, to 6.99 percent at 11:21 a.m. in Cairo, according to prices compiled by Bloomberg. That pared the rate’s increase this week to nine basis points. The Egyptian pound weakened 0.1 percent to 6.0455 a dollar.
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