Egypt 5-yr CDS falls to 6.6% as investor confidence grows

The cost of insuring Egyptian government bonds using Credit Default Swaps (CDS) fell on Friday, supported by optimism that a potential ceasefire deal in Gaza can be reached soon.

According to latest market data, five-year CDS for Egypt dropped to 6.57 per cent as of August 16, compared with 7.34 per cent on August 7.

This positive trend coincides with a recent influx of foreign investment into Egypt’s debt market. Over the past three trading days, foreign and Arab investors have purchased a net $175.7 million worth of treasury bills and bonds, reversing a prolonged selling streak. This renewed investor interest has contributed to a strengthening of the Egyptian pound, pushing it to less than 49 pounds for one US dollar.

Attribution: Amwal Al Ghad Arabic

Subediting: M. S. Salama