Egypt Bonds Slump After S&P Cuts Outlook on Grim Forecasts
- S&P forecasts central bank reserves at half IMF’s projection
- Rating company says corporate FX hoarding behind pound drop
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Egyptian bonds slumped after S&P Global Ratings took a far more downbeat view of the nation’s finances than the International Monetary Fund, forecasting further currency depreciation and lowering its outlook to negative.
Dollar bonds maturing in 2025 dropped 1.6 cents on Monday while notes maturing in 2032 fell 0.9 cents, pushing their yields to 20.2% and 17.4% respectively, data compiled by Bloomberg showed. As of 4 p.m. in London, Egyptian debt of varying maturities made up nine of the ten worst-performing bonds in emerging markets on the day.