Egypt’s local borrowing costs rose, with the yield on one-year bills hitting a record, as bank funding constraints and political uncertainty overshadowed a potential deal to get aid from the International Monetary Fund.
Average yields at an auction of treasury bills on Thursday climbed eight basis points on six-month notes to 14.71 per cent and 21 basis points, the most in more than a month, on one-year securities to 15.77 per cent. The increases came even as government talks with the IMF on a $3.2 billion loan this week prompted yields on Egypt’s dollar-denominated debt to fall and its credit risk to drop the most in more than seven months.
“The market has already priced in a possible agreement with the IMF,” Nour Mohei-el-Din, assistant general manager for treasury at BNP Paribas Egypt, said by telephone on Wednesday. “There’s a feeling that the IMF help is too little and too late to have an positive effect on pressured liquidity at local banks, which continue to be the primary buyers of T-bills.”
No comments:
Post a Comment