Yields on Egyptian treasury bonds jumped on Monday, two days after President Abdel Fattah al-Sisi introduced politically sensitive energy subsidy cuts in a step to reduce a swelling budget deficit.
The average yield on 1.5-year zero coupon bonds rose to 11.579 percent from 11.379 percent at the last auction on June 23. The 3-year bond yields rose to 12.690 percent from 12.579.
The average yield on 7-year bonds rose to 14.536 percent from 14.173 percent at the June 23 auction.
Egypt has slashed subsidies for car fuel and natural gas, increasing their prices by more than 70 percent. Food and energy subsidies traditionally eat up a quarter of state spending.
Treasury bills also rose on Sunday after the news, with the average yield on 91-day treasury bills reaching 10.753 percent from 10.672 percent at the last auction on June 29.
The yield for 266-day treasury bills also rose, to 11.100 percent from 10.940 percent for similar 273-day bills at an auction on June 29.
Source: Reuters
