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Tuesday, 19 November 2019

Central Bank of Egypt sells USD 1.56 bn in 1-year USD T-Bills

CBE sells USD 1.56 bn in 1-year USD T-Bills: The Central Bank of Egypt (CBE) sold yesterday USD 1.56 bn in 1-year USD-denominated T-bills, official CBE data shows. The bills carry an average yield of 3.587%, falling slightly from 3.87% in the last similar auction in June, which saw Egypt sell USD 715 mn worth of paper.

Yields are low in local currency auctions following rate cut: The CBE accepted EGP 687 mn-worth of subscription requests in a separate auction yesterday for EGP 3.75 bn-worth of five- and 10-year treasury bonds, CBE data showed (pdf). Yields fell by nearly 50 basis points for 10-year bonds to 13.797% from 14.225% in the auction for same-tenor bonds last week. Five-year bond yields also dipped to 13.837% from 14.296%. Three- and nine-months bills similarly fell by a close margin at an auction earlier this week.

The CBE’s Monetary Policy Committee cut interest rates by 100 bps in its meeting last Thursday, resuming its easing cycle. The move came as no surprise amid low inflation figures, and a worldwide trend toward stimulating growth. Analysts saw the cut as unlikely to dent the attractiveness of Egypt’s debt, particularly as the Fed also moved to cut rates and as Egypt’s real rates remain among the world’s highest.

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