Egypt Yields Decline as Qatar Pledges Bond Purchase; Pound Falls - Bloomberg

Egypt met its target at a treasury- bill auction as local borrowing costs dropped after Qatar pledged to buy debt. The pound retreated after the central bank’s 12th auction of dollars to banks.
The Arab country sold 3.5 billion pounds ($530 million) of nine-month notes at an average yield of 13.69 percent, according to central bank data on Bloomberg. That’s a decrease of 71 basis points, or 0.71 of a percentage point from an auction of similar-maturity bills last week, the most since September. The three-month yield fell 56 basis points to 12.88 percent, the data show.
Egypt’s cabinet is due to discuss this week selling $2.5 billion of treasury bonds to Qatar after the Persian Gulf country committed the funds as part of an aid package, Egyptian Finance Minister El-Morsi Hegazi said last week. The North African country is looking to bolster foreign currency reserves, which have lost almost 60 percent since the start of a popular revolt two years ago, after the central bank started selling dollars to banks at auction to limit their decline.
Egypt Yields Decline as Qatar Pledges Bond Purchase; Pound Falls - Bloomberg