Central Bank of Egypt (CBE) said the average yield on 182-day treasury bills rose to its highest level in at least a decade at an auction on Thursday, while the yield on 357-day bills rose as well.
The government has been squeezing the lending ability of local banks after turning to the domestic market to finance a budget deficit that widened after a popular uprising unseated Egypt’s president.
The average yield on 182-day T-bills climbed to 15.194 percent from 15.087 percent at an auction last week, its highest rate in a decade at least. The bank sold EGP 3 billion ($496.8 million), the same amount it had offered.
The average yield on 357-day T-bills rose to 15.882 percent from 15.748 at the last issue on May 8. This was its highest level since March 13. The bank sold EGP 3.5 billion, the same amount it had sought, Reuters reported.
