Egypt Bond Yields, Default Risk Rise as Islamists Shun Cabinet - Bloomberg

Egypt Bond Yields, Default Risk Rise as Islamists Shun Cabinet - Bloomberg:

"Egypt’s benchmark bonds fell, pushing the yield to a week high, after Islamists boycotted the transitional government and called for renewed protests. The country’s default risk advanced for a third day.
The yield on the government’s 5.75 percent notes due in April 2020 increased seven basis points, or 0.07 percentage point, to 8.54 percent, the highest on a closing basis since July 10, at 2:25 p.m. in Cairo, according to prices compiled by Bloomberg. Five-year credit default swaps climbed 50 basis points to 725, according to CMA data.
Interim President Adly Mansour yesterday swore in a team of 34 ministers which didn’t include any Islamists. The Muslim Brotherhood rejected the new cabinet and vowed to escalate protests to demand the reinstatement of former President Mohamed Mursi. The army forced Mursi out of office on July 3, triggering a wave of violent clashes that have left 57 dead and hundreds injured in the past two weeks. Police clashed with hundreds of Mursi supporters in Cairo today."

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