Yields on Egypt’s short-term borrowing fall significantly

The average yields on Egypt’s six-month and one-year treasury bills dropped in their weekly auction on Thursday, reports Reuters. Average yield on the six-month bill fell to 19.574% from 21.175% and the yield on the one-year bill fell to 19.348% from 20.952%. The drop “illustrates improvement in liquidity, mainly boosted by the strong recovery in appetite from foreign investors and inflows in Egyptian treasuries … This will ease the cost of funding for the government,” CI Capital senior economist Hany Farahat says. Head of public debt at the Finance Ministry Sami Khallaf says that the total foreign holdings of Egyptian securities reached EGP 250.7 bn as of 1 August.