Hermes: Euro T-Bill Auction ‘Attractive’, Foreigners May See Pound Less Risky

EFG-Hermes said in a report that the euro T-bill auction was oversubscribed, with an average yield of 3.245% above the Bloomberg consensus estimates of 3.05% and the EUR interbank rates. The investment bank added that Egypt was seeking to raise 400 million euros.

However, the risks of a sharp devaluation of the EGP appear to have diminished in recent weeks, due to progress on a larger IMF loan, news of significant financial support from Qatar, and continuing slight depreciation in USD-EGP, Hermes said. It added that it is likely that foreign holdings of EGP T-bills, reported at just $125 million in May, have bottomed out.

Mubasher