Finance Ministry Sold 5-, 7-Year T-Bonds Worth EGP 1.5 Bln

The Egyptian Ministry of Finance sold 5- and 7-year T-bonds worth EGP 1.5 billion on Monday.

The Ministry stated on its website that it sold 5-year T-bonds for EGP 1 billion in an auction, the total amount it has offered. It added that it offered EGP 1 billion worth of 7-year T-bonds, but it only raised EGP 500 million because banks demanded higher returns.

The yields on 5-year T-bonds ranged from 14.67% to 14.89%, while the average rate registered 14.79%. The yields on 7-year T-bonds ranged from 15.10% to 15.25%, while the average rate reached 15.184%.

The Ministry of Finance sells treasury bills and bonds in order to finance the widening budget deficit which is expected to reach EGP 200 billion by the end of FY 2012/2013.