May 31 (Bloomberg) -- Egypt sold its target 4 billion Egyptian pounds ($662 million) of treasury bills today as yields were little changed before the verdict in the trial of former President Hosni Mubarak. The dollar bonds advanced.
The North African country accepted bids for six- and 12-month notes valued at 1.5 billion pounds and 2.5 billion pounds, respectively, according to Finance Ministry data. The average yield on six-month securities was little changed from last week’s auction at 15.295 percent, near the highest level since Bloomberg started tracking the data in 2006. The one-year yield fell one basis point, or 0.01 of a percentage point, to 15.89 percent, the data show.
A Cairo court is due to issue Mubarak’s verdict June 2 on charges of complicity in the deaths of protesters during the uprising that ended his three-decades of rule last year.
Pressure on funding at local banks has been driving government borrowing costs higher as foreign investors shun the debt. Foreign holdings of T-bills fell 97 percent since the start of last year to $1.6 billion in February, according to central bank data.
The yield on Egypt’s 5.75 percent dollar bonds due in 2020 fell five basis points, or 0.05 of a percentage point, to 6.77 percent at 2:14 p.m. in Cairo, according to prices compiled by Bloomberg. It has dropped 15 basis points this month. The Egyptian pound strengthened 0.1 percent to 6.0414 a dollar.
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