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February 08, 2011

Egypt Sells Most of Treasury Debt Offered as Yields Climb to Two-Year High

Well that worked, but...:

Egypt Sells Most of Treasury Debt Offered as Yields Climb to Two-Year High - Bloomberg

Egypt raised most of the 15 billion Egyptian pounds ($2.5 billion) it sought at a debt auction as local banks stepped in to provide financing in the wake of protests aimed at ending President Hosni Mubarak’s 30-year rule.

The government sold a total 13 billion pounds of bills, paying yields of 10.97 percent on 91-day notes, the highest rate in two years and up 147 basis points, or 1.47 percentage point, from the previous sale on Jan. 27. The yield is down from 14 percent in the aftermath of Lehman Brothers Holdings Inc.’s collapse in September 2008.

“We were expecting yields to be higher but government banks especially National Bank of Egypt helped stabilize the market,” Khalil El Bawab, the head of fixed-income at Cairo- based EFG-Hermes Asset Management, said in a telephone interview. National Bank of Egypt Chairman Tarek Amer said that the bank will continue to buy government t-bills

Emphasis added
One part of the Gov stepped in to buy the other part's issuance.

Of course that is less liquidity for the private sector, but since Egyptian public banks do tied lending....

Posted by The Lounsbury at February 8, 2011 06:48 PM
Filed Under: Economic Policy , Egypt Mamlouk Coup , Foreign Policy & MENA , North Africa , The MENA '48

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