Foreign investments in Egyptian sovereign debt rose to $10.6bn June-end
Egypt is restoring position as a carry trade a longtime “favorite,”Bloomberg says
Foreign investments in Egyptian sovereign debt rose to $10.6 billion by the end of June, and the first two weeks of July saw another $3 bn of inflows to local debt, Bloomberg reports, citing an unnamed Egyptian officials.
The reversal of the massive capital outflows Egypt witnessed during the earlier months of the pandemic comes as the hunt for an attractive carry trade has brought investors back to Egypt, a longtime “favorite,” Bloomberg says.
International buyers are returning for a second month after a pickup in June pushed their holdings of local-currency government bonds to $10.6 billion, a reversal from Egypt’s largest-ever capital outflows in the previous three months.
Egypt’s international bonds have performed better than some other similarly rated emerging market sovereigns, such as El Salvador and Sri Lanka, since the March sell-off according to Reuters
Egypt’s 2025, 2027 and 2040 issues are trading around 12% or less from pre-pandemic highs, Refinitiv data shows.