Egypt Credit Risk Falls to Lowest Since Start of Protests as Crisis Eases - Bloomberg

Egypt’s credit risk is falling to the lowest level since anti-government protests began two weeks ago and international borrowing costs are dropping as the nation’s biggest political crisis in three decades eases.

The cost of insuring Egyptian sovereign debt retreated 32 basis points, or 0.32 percentage point, yesterday to 334, the lowest level since Jan. 25, according to CMA prices in London. The yield on Egypt’s 5.75 percent bond due in April 2020 slumped 39 basis points to 6.21 percent after climbing to a record 7.2 percent on Jan. 31, data compiled by Bloomberg show.

The government raised most of the 15 billion Egyptian pounds ($2.5 billion) sought at a debt auction yesterday as negotiations between opposition leaders and Vice President Omar Suleiman on constitutional changes needed to end the 30-year rule of President Hosni Mubarak made “big progress,” Egyptian billionaire Naguib Sawiris, a participant in the talks, said on Bloomberg Television.