(Updates with amount raised in second paragraph.)
Oct. 20 (Bloomberg) -- The average yield on Egypt’s six- month treasury bills sold at an auction today fell and demand for the securities was more than twice the amount offered. The yield on one-year notes rose.
Egypt’s central bank raised its target of 6 billion Egyptian pounds ($1 billion) at the auction. The average yield on six-month notes declined three basis points, or 0.03 percentage point, to 13.071 percent compared with the sale of similar maturity bills last week, according to Finance Ministry data. The rate on one-year securities advanced six basis points to 13.777 percent.
Egypt has asked Persian Gulf governments to invest in its government securities to help lower borrowing costs, which are near their highest levels in three years. Saudi Arabia plans to invest $500 million in Egypt’s T-bills and will give the Arab country another $500 million to finance its budget deficit, the kingdom’s ambassador to Egypt Ahmed al-Qattan said Oct. 16. The announcement came after Qatar provided Egypt with $500 million in budgetary support earlier this month.
The yield on Egypt’s 5.75 percent 10-year dollar bond due April 2020 advanced two basis points to 5.83 percent at 3:46 p.m. in Cairo. Twelve-month non-deliverable forwards for the pound retreated 0.3 percent to 6.7 per dollar, reflecting an expectation for the currency to weaken 12 percent over the life of the contracts.
--Editors: Claudia Maedler, Shaji Mathew
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