Egypt Offers T-Bills on Second Day of Vote; Dollar Bonds Gain

Egypt will offer 4.5 billion Egyptian pounds ($745 million) of treasury bills today as yields rose ahead of the second day of voting in the country’s presidential election. The dollar bonds advanced.

The North African country will seek bids for six- and 12- month notes valued at 2 billion pounds and 2.5 billion pounds, respectively, according to central bank data on Bloomberg. The mid-yield on one-year notes in the secondary market rose six basis points, or 0.06 of a percentage point, to 15.76 percent yesterday, according to data compiled by Bloomberg. That’s the highest level in almost two months.

The debt sale is part of a Finance Ministry plan to raise 150 billion pounds this quarter, the last of the country’s fiscal year. The ministry has fallen about 6 percent short of its 102 billion-target so far, according to data compiled by Bloomberg.

Egyptians are heading to the polls for the second and final day in the country’s first presidential election following the ouster of Hosni Mubarak last year. More than 50 million eligible voters will choose one of 13 candidates, with a possible run-off round scheduled for mid-June.

The yield on the 5.75 percent dollar bonds due in 2020 fell three basis points to 6.86 percent at 11:30 a.m. in Cairo, according to prices compiled by Bloomberg. That brought the rate’s drop this week to 28 basis points. The Egyptian pound was little changed at 6.0381 a 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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