Yield on Egypt 9-Month T-bills Falls More Than 50 Bp at Auction

Yields on Egyptian nine-month treasury bills tumbled by half a percentage point at an auction on Sunday ahead of a central bank policy meeting later this month, while yields on the three-month bill rose slightly, the central bank said.

The average yield on 91-day treasury bills inched up to 11.498 percent from 11.473 percent at last week’s auction, while the yield on 273-day T-bills fell to 12.031 percent from 12.547 percent, the central bank said.

The bank sold 2 billion Egyptian pounds ($284.93 million)of the 91-day T-bills and 4 billion pounds of the 273-day bills, the amounts it had sought.

“The market is currently pricing in a rate cut by the Central Bank of Egypt in its next meeting on Sept. 19,” said one Cairo-based fixed-income trader.

“Judging that the 9-month yield went down by about 50 basis points, we can say that the market expects the rate cut to be around 50 basis points.”

Source: Reuters