CAIRO: Yields on Egyptian treasury bills rose for the third straight week at an auction yesterday and the central bank sold the entire amount it offered.
The average yield on 91-day treasury bills inched up to 11.013 percent at yesterday’s auction from 11.003 percent last week, the central bank said. The yield on 273-day T-bills increased to 11.190 percent from 11.131 percent.
Egypt’s Central Bank on September 19 cut its key interest rates by 50 basis points, the second cut in a row.
“The market was overexcited since the last interest rate cut and pushed yields down to unwarranted levels. So the market has been adjusting since then,” said one Cairo-based fixed-income trader. The bank sold EP2bn ($290.35m) of the 91-day T-bills and 3.5 billion pounds of the 273-day bills, the entire amount on offer. Reuters
