Tuesday 8 February 2011

Egypt’s Funding Costs Soar Amid Political Unrest - MarketBeat - WSJ

Egypt’s short-term funding costs surged Monday amid ongoing political unrest in the country, with the yield on its latest treasury bills auction seen sharply higher than the month earlier.

Egyptian central bank treasury bills auctioned Monday will likely be priced in the 11% to 12% range, substantially higher than the weighted average of about 9.5% to 10.6% in the January auctions, two traders familiar with the sale said Monday.

“The three-month maturity t-bill is likely to be priced in the 11% area (average 10.972%), the six-month t-bill average was at 11.484%, and the nine-month average stood at 11.657%,” a dealer with a Cairo-based bank involved in the auction, who declined to be named, told Zawya Dow Jones. “We are waiting for more details.”

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