Egypt’s Eurobond yields jump 170 bps in Q3 amid Iran-US tensions – CBE

Egyptian Eurobond yields rose sharply in the third quarter of fiscal year 2025/26, reflecting “a limited decline” in risk sentiment amid the Iran-US conflict, the Central Bank of Egypt (CBE) said in its Monetary Policy Report released on Monday.

“In Q3 FY 2025/26, Egyptian Eurobond yields increased by an average of 170 bps, reflecting a limited decline in risk sentiment despite the Iran-US conflict,” the central bank said.

The report added that broader emerging market assets were hit by capital outflows as investors turned risk-averse during the period of heightened geopolitical tensions.

“While the risk aversion triggered regional outflows and capital flight from emerging markets, spreads partially stabilised later, as positive signals of a potential de-escalation in the conflict improved investor sentiment and supported partial renewed inflows,” it said.

Attribution: Amwal Al Ghad English