Awaiting Egypt Rate Liftoff, Investors Buy 3-Month Bills: Chart

After the Central Bank of Egypt unexpectedly held its benchmark interest rate last week, yields on three-month Treasury Bills fell 15 basis points on Sunday, the most since May 10. Investors are preferring short-term securities as they foresee a significant rate increase this year to accompany a widely-anticipated devaluation of the Egyptian pound, according to Amr Seif, head of treasury at Al Ahli Bank of Kuwait in Egypt. Even nine-month bills are considered riskier at this point, he said.

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