Egypt Cuts Bond Sale as Investors Drive Yields to 1-Year High
This article is for subscribers only.
Egypt issued less than a fifth of the debt it planned to sell as investors’ demand for yield raised borrowing costs to the highest in a year after the central bank increased interest rates last week.
The government sold 787 million Egyptian pounds ($110 million) of securities at an auction yesterday, 19 percent of the original 4.25 billion pounds it sought, according to central bank data posted on Bloomberg today. The average yield on three-year notes jumped 128 basis points, or 1.28 percentage points, to 13.97 percent. The yield on seven-year debt climbed 125 basis points to 15.781 percent. Both are the highest since July 2013.