Yield on Egyptian treasury bills nears 31 percent mark
Date
12/1/2024 2:49:04 AM
(MENAFN) The yield on Egyptian treasury bills has neared the 31 percent mark, a level not seen since last March, as the Central bank of Egypt (CBE) announced plans to issue government debt instruments worth 84 billion Egyptian pounds (USD1.8 billion) this week. These instruments include treasury bills and bonds and are aimed at financing the country’s budget deficit. This development comes amid ongoing efforts to stabilize the Economy following a wave of inflation over recent months.
Last month, the Monetary Policy Committee of the CBE opted to maintain interest rates for the fifth consecutive time. This decision aligns with market expectations, as the central bank continues to navigate persistent inflationary pressures over the past three months. The move reflects a cautious approach to managing the country's economic challenges while keeping borrowing costs steady.
According to the CBE's data, treasury bills worth EGP 40 billion with a three-month maturity and EGP 25 billion with a nine-month maturity are being issued today, Sunday. Additionally, the bank will offer fixed-return bonds worth EGP 5 billion for two years and EGP 12 billion for three years on Monday, along with variable-return bonds worth EGP 2 billion for a five-year period. These offerings aim to attract diverse investor participation.
The Central Bank regularly issues weekly debt instruments on behalf of the Ministry of Finance to cover the general budget deficit. Government banks remain the largest purchasers of these bonds and bills, which are issued over varying timeframes to meet the financial needs of the state. These auctions are a critical tool for sustaining fiscal operations and managing public debt.
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