Bloomberg News

Egypt Offers T-Bills Before Mubarak Verdict; Dollar Bonds Gain

May 31, 2012

Egypt will offer 4 billion Egyptian pounds ($662 million) of treasury bills today before the verdict in the trial of former President Hosni Mubarak. The dollar bonds advanced.

The North African country will sell six- and 12-month notes valued at 1.5 billion pounds and 2.5 billion pounds, respectively, according to central bank data on Bloomberg. The yield on the six-month securities climbed to 15.296 percent at last week’s auction, the highest level since Bloomberg started tracking the data in 2006.

A Cairo court is due to issue Mubarak’s verdict June 2 on charges of complicity in the deaths of protesters during the uprising that ended his three-decades of rule last year.

Pressure on funding at local banks has been driving government borrowing costs higher in the absence of foreign investors, who have shunned the debt because of unrest. Foreign holdings of T-bills fell 97 percent since the start of last year to $1.6 billion in February, according to central bank data.

The yield on Egypt’s 5.75 percent dollar bonds due in 2020 fell one basis point, or 0.01 of a percentage point, to 6.80 percent at 12:22 p.m. in Cairo, according to prices compiled by Bloomberg. The rate has dropped 11 basis points this month. The Egyptian pound was little-changed at 6.0443 a dollar.

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


Race, Class, and the Future of Ferguson
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus