Finance Ministry Offers EGP 2.5 Bln T-Bonds On Banks’ Higher Demand

The Egyptian Ministry of Finance increased the value of T-bonds it offers at auctions on Monday from EGP 1.5 billion to EGP 2.5 billion, after banks’ demand for 3- and 10-year T-bonds increased.

The value of 3-year T-bonds rose EGP 500 million to EGP 1.5 billion. The yields on 3-year T-bonds ranged from 14.35% to 14.52%, while the average rate registered 14.475%.

The value of 10-year T-bonds surged EGP 500 million to EGP 1 billion. The yields on 1-year T-bonds ranged from 16.40% to 16.52%, while the average rate registered 16.484%.

Today’s auction raises the value of the state’s revenues from treasury bills and bonds to EGP 20.5 billion since the start of February.

The Ministry of Finance sells treasury bills and bonds in order to finance the widening budget deficit which reached EGP 91 billion at the end of the first half of FY 2012/2013 and is expected to reach EGP 200 billion by the end of the current fiscal year.