April 24 (Bloomberg) -- Egypt sold 17 billion Egyptian pounds ($2.8 billion) of seven-day repurchase agreements today, after receiving bids for 18.4 billion pounds of the contracts. Dollar bonds were declined for a second day.
The contracts, known as repos, allow government securities holders to sell them back to the North African nation’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 yield on the 5.75 percent dollar bonds due 2020 rose two basis points, or 0.02 percentage point, to 6.95 percent at 4:08 p.m. in Cairo, the highest level since April 11. The Egyptian pound retreated 0.1 percent to 6.0494 a dollar, poised for the weakest close since December 2004.
To contact the reporter on this story: Ahmed A Namatalla in Cairo at firstname.lastname@example.org
To contact the editor responsible for this story: Claudia Maedler at email@example.com