Bloomberg News

Egypt Meets T-Bill Goal at Added Cost Before Planned Protest

October 27, 2011

(Updates with 2020 dollar bond yield in fifth paragraph.)

Oct. 27 (Bloomberg) -- Egypt raised its target 5.5 billion Egyptian pounds ($921 million) at an auction today as yields increased before a planned protest tomorrow.

The average yield on one-year securities climbed to the highest level in almost a month, increasing eight basis points, or 0.08 percentage point, to 13.854 percent. The yield on six- month notes rose six basis points to 13.131 percent, according to Central Bank of Egypt data on Bloomberg.

Political groups including the April 6 Youth Movement are planning a demonstration tomorrow to demand the ruling military council speed-up the transition of power to civilians. The council has scheduled parliamentary elections to start next month. It hasn’t set a date for the presidential poll.

Egypt’s government is reviving discussions this week on a $3 billion loan from the International Monetary Fund to curb the increase in its borrowing costs, now near a three-year high. It had turned down a similar loan from the fund in June.

The country’s 5.75 percent 10-year dollar bond due April 2020 advanced, sending the yield six basis points lower to 5.73 percent at 2:57 p.m. in Cairo. The pound was unchanged at 5.9694 per dollar.

--Editors: Claudia Maedler, Linda Shen

To contact the reporter on this story: Ahmed A Namatalla in Cairo at anamatalla@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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