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Egypt Seeks $2.6 Billion in T-Bill, Bond Sales Over Next Week

The lender said earlier this week it will offer a combined 4 billion pounds in two-year and three-year fixed-rate bonds on Sept. 19.
15.09.11 | Source: San Francisco Chronicle

Egypt plans to raise 15.5 billion Egyptian pounds ($2.6 billion) over the next week at auctions of treasury bills and treasury bonds, the largest such amount this quarter.

The Arab country's central bank will seek bids for 2.5 billion pounds in six-month notes and 3.5 billion pounds of one- year securities tomorrow, according to Central Bank of Egypt data on Bloomberg. It plans sales of three-month and nine-month bills on Sept. 18 valued at 2 billion pounds and 3.5 billion pounds, respectively, according to the data.

The lender said earlier this week it will offer a combined 4 billion pounds in two-year and three-year fixed-rate bonds on Sept. 19.

Egyptian treasury bill yields soared last week as the government's need for financing pushed it to accept the highest borrowing costs in almost three years. The yield on one-year securities climbed 62 basis points, or 0.62 percentage point, to 13.6 percent. The central bank, which holds the auctions on behalf of the finance ministry, canceled the sale of three-month and nine-month notes on Sept. 11.

The yield on Egypt's 5.75 percent 10-year dollar bond due April 2020 was little changed at 5.44 percent at 1:08 p.m. in Cairo. The pound's 12-month non-deliverable forwards gained 0.5 percent to 6.59 per dollar, reflecting the expectation for the currency to weaken 9.6 percent over that period.

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