Bloomberg News

Egypt Meets Bills Sale Goal, Bonds Rise Before IMF Visit

March 15, 2012

Egypt raised the targeted 7 billion Egyptian pounds ($1.2 billion) from the sale of treasury bills as yields fell to the lowest in more than a month before an International Monetary Fund visit next week. Dollar bonds rose.

The North African country accepted bids for 3.5 billion pounds each of six- and 12-month (EGTBY12) notes, according to central bank data on Bloomberg. The average yield on six-month bills fell five basis points from last week’s sale to 14.819 percent, the lowest level since Jan. 19. The one-year rate fell two basis points to 15.919 percent, the lowest since an auction on Feb. 2.

Surging yields had forced the government to fall 23 percent short of the 118.5 billion pounds it targeted in the first two months of the year, according to finance ministry data. Yields on the bills have leveled off in the past month after surging by more than 2 percentage points on nine-month and one-year securities since October.

An advance team from the IMF will arrive in Cairo on March 18, Finance Minister Momtaz el-Saieed said this week. The government has requested a $3.2 billion loan from the fund.

The 5.75 percent dollar bonds due April 2020 advanced for a sixth day. The yield dropped five basis points, or 0.05 percentage point, to 6.43 percent at 1:26 p.m. in Cairo, the lowest level since Nov. 18, according to prices compiled by Bloomberg.

The Egyptian pound was little changed at 6.0339 a dollar, having lost 1.8 percent in the past year.

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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