Egypt cancels EGP 34.5B T-bond auctions over high yields
Updated 2/14/2024 8:52:00 AM
Arab Finance: The Egyptian government has canceled 29 auctions of treasury bonds (T-bonds) worth EGP 34.5 billion out of 31 auctions during the first half (H1) of fiscal year (FY) 2023/2024 due to the high yields required by banks from investors, an official at the Ministry of Finance told Asharq Business.
On the other hand, the government issued two T-bonds valued at EGP 7 billion in H1 of the current FY with different terms ranging between three and seven years and yields ranging between 23% and 25%.
The official noted that canceling the auctions makes sense when the yield required by banks surpasses 25%.
It is worth noting that treasury bills represented 99% of the country’s debt market in H1 FY 2023/2024, amounting to EGP 2.664 trillion, while the T-bonds accounted for the remaining amount.
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