Egypt has just completed an auction of E£13bn ($2.2bn) in short-term sovereign debt – and in the circumstances it can be counted as a success, even though foreigners largely stayed away. It chose to sell E£2bn less than planned and yields were higher than at the previous auction. But given that the two auctions came either side of a near revolution and multiple credit rating downgrades, they weren’t that much higher. The details are here:
Egypt sold E£7bn of 3-month Treasury bills yielding 10.972 per cent, compared with a yield of 9.499 per cent in the previous auction. It sold E£4bn of 6-month T-bills yielding 11.484 per cent, versus the previous 10.62 per cent. And it sold E£2bn of 9-month bills yielding 11.657 per cent, against the previous 10.52 per cent. That data comes courtesy of Barclays Capital.
The auctions seem to have depended on buying by local banks, which are very liquid and already make up much of the market.
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