The Egyptian Ministry of Finance sold 3- and 10-year treasury bonds worth EGP 1 billion on Monday. The Ministry raised EGP 500 million from 3-year T-bonds and EGP 500 million from the 10-year T-bonds it offered today.
The yields on 3-year T-bonds ranged from 14.10% to 14.370%, while the average rate registered 14.339%. The yields on 10-year T-bonds ranged from 16.30% to 16.330%, while the average rate registered 16.309%.
The Ministry targets to offer treasury bills and bonds worth EGP 51.5 billion in March, while it sold EGP 98.5 billion worth of treasury bills and bonds in January and February.
The Ministry sells government debt instruments so as to finance the widening budget deficit, although these instruments impose great burdens on the country as their return exceeds 16% at times.
The economic indicators show that the country will be in need to sell more treasury bills and bonds in the upcoming period so as to finance the burgeoning budget deficit which reached EGP 119.8 billion in seven months since the start of the current fiscal year, registering 6.7% of the country’s gross domestic product (GDP). The budget deficit is expected to reach EGP 180 billion by the end of the current fiscal year.