Average yields dipped at an auction of re-opened three- and seven-year bonds on Monday, continuing a steady slide that has been fuelled by expectations that rates could fall further if Egypt secures a $4.8 billion International Monetary Fund loan.
An IMF team is expected to come to Egypt after the Eid al-Adha holiday, that runs from Thursday to Sunday. The loan is seen as vital to help Egypt cover its budget deficit and boost investor confidence in the government’s economic programme.
The average yield on re-opened three-year bonds that mature on Oct. 9, 2015, was 13.470 percent . When the bonds were first offered this month, the average yield was 14.0571 percent.
For the re-opened seven-year bonds that mature on Aug. 21, 2019, the average yield was 14.470 percent. Seven-year bonds issued on Oct. 16 had an average yield of 15.38 percent.
