T-bill yields fall in first post-rate cut auction: Average yields on 6-month and 1-year government T-bills fell to 16.521% and 16.263%, respectively, in the first auction since the Central Bank of Egypt cut interest rates by 150 bps earlier this month, CBE data showed. That compares to yields of 16.9% on 6-month notes and 16.511% on 1-year bills at the last auction earlier in August. Yields on 10-years also fell 87 bps to 14.682% in an auction last week.

Meanwhile, local banks have started lowering interest rates on savings accounts and time deposits following the rate cut: Both the National Bank of Egypt and Attijariwafa Bank cut by up to 150 bps yields on different types of savings accounts. Banque du Caire and First Abu Dhabi reduced yields by 150 bps on three-year certificate of deposits (CDs) to 13% and 11%, respectively. Blom Bank Egypt and Arab Bank, meanwhile, have stopped issuing the three-year CDs until obtaining the CBE’s approval to follow suit.