"Egypt’s benchmark bonds declined, pushing the yield to a record, as stocks and forward contracts for the pound dropped after President Mohamed Mursi rebuffed the military’s deadline to end the political crisis.
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Egypt's pound has weakened almost 12 percent since Dec. 30, when the central bank eased its support in order to conserve foreignian reserves that plunged by more than half since the 2011 revolt that ousted Hosni Mubarak.
The yield on the $1 billion of 5.75 percent bonds due April 2020 jumped 13 basis points to 10.35 percent at 2:34 p.m. in Cairo, the highest on a closing basis since the notes were sold in 2010. Twelve-month non-deliverable Egyptian pound forwards weakened 8.1 percent, the most since Jan. 2, to 9.05 a dollar, data compiled by Bloomberg show. That signals investors expect a depreciation of 22 percent in a year from 7.0289 a dollar today."
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