Egypt T-bill yields rise at LE 12 bln sale

Egyptian treasury bill yields climbed at a LE 12 billion ($2.01 billion) auction on Wednesday ahead of a three-day bank holiday next week, the Finance Ministry said.

Yields have been rising at recent auctions, and Finance Minister Hazem El-Beblawi said last week local lenders had nearly reached the maximum they could lend to cover the government's budget deficit.

Egypt would have to seek funds from abroad, he added.

The central bank, which sells T-bills on behalf of the Finance Ministry, sold the same amount at the auction that it had offered.

It sold LE 2.5 billion of 182-day T-bills at an average yield of 13.247 percent, up from 13.131 percent at an auction last week.

It also sold LE 3.5 billion of 357-day T-bills at an average yield of 13.961 percent, up from 13.777 percent at the last issue on Oct. 25.

The central bank normally sells domestic T-bills in two auctions each week, each comprised of two maturities, but this week brought Sunday's auction of 91- and 266-day bills forward by four days.

The bank sold LE 2.5 billion of 91-day T-bills at an average yield rose to 12.385 percent from 12.298 percent at an auction on Sunday.

It also sold LE 3.5 billion of 266-day T-bills and the average yield rose to 13.931 percent from 13.725 percent at the last issue on Oct. 25.