Following the Central Bank of Egypt’s (CBE) decision to cut interest rates by 1% on Thursday, the yields on Egypt’s state treasury bonds launched by the Ministry of Finance saw a decline on Monday ranging between 0.65 and 0.89%.
On Monday, the CBE, on behalf of the Ministry of Finance, issued a three-year bond worth EGP 1bn.
The interest rates, accepted by the Ministry of Finance, on the T-Bonds has declined to 16.4% for the lowest price, 16.58%% for the highest price, and 16.506% on average, compared to 17.1%, 17.34%, and 17.34% in the last T-Bonds offer launched on 5 February, a decline ranging between 0.7% and 0.834%.
The CBE received offers from 78 investors worth EGP 5.976 bn, equivalent to about six times the required value, of which only 25 were accepted with a value of EGP 3.09bn, while the rest bids were rejected, of which their yields reached 18.5%.
Also, the CBE issued on Monday another 7-year T-Bonds offer worth EGP 750 m.
The interest rates, accepted by the Ministry of Finance, on the 7-year T-Bonds have declined to 16.74% for the lowest price, 17.15% for the highest price, and 16.982% on average, compared to 17.5%,17.80%, 17.713% in the last T-Bonds offer launched on 5 February, a decline ranging between 0.65, and 0.76%.
The CBE received offers from 66 investors worth EGP 2.25bn, equivalent to about 3 times the required value, of which 46 ones were accepted with a value of EGP 955.40m, while the rest bids were rejected, of which their yields reached 18.55%.
It’s to be noted that the yields on Egypt’s T-Bonds launched by the Ministry of Finance saw a decline on Sunday ranging between 0.34 and 0.83%, while the interest rates, accepted by the Ministry of Finance, on the T-Bonds for maturity of 91 days have declined to between 17.248%, and 17.528%, while the interest rates on the T-bonds for maturity of 273 days recorded between 17.5% and 17.8%.
