Egypt five-year bond yield rises at auction

01 Jul, 2013

Egypt had to pay more to borrow over five years at a bond auction on Monday than a month ago, and the central bank sold only half the paper it offered. Yields on Egyptian government paper have risen over the last month on concerns that mass anti-government protests planned for June 30 may turn violent.
At Monday's sale, the average yield on its May 2018 bond rose to 15.84 percent from 15.727 percent at the last auction on May 27, the finance ministry said. The central bank had offered 1 billion Egyptian pounds, but sold only 500 million pounds' worth.
The central bank said several upcoming auctions would be held earlier than usual. An auction of three- and nine-month treasury bills would be held on June 26 instead of June 30, and six- and 12-month bills on June 27 instead of July 1. Three and seven-year bonds would be auctioned on June 26 instead of July 2. July 1 is a bank holiday in Egypt.

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