T-bill yields to continue falling in 2019- economists

Egypt could see its T-bill yields continue to fall in 2019 on the back of positive economic indicators, economists tell Reuters. Slowing inflation and money supply growth, as well as an expectedly tighter budget deficit over the past year were cited by economists. “I predict, by the end of the year, another fall of between 200 and 300 basis points,” said Pharos Holdings COO Angus Blair. Naeem Brokerage’s Allen Sandeep, meanwhile, expects yields to fall by 100 bps by the end of 2019, citing improved risk sentiment and the Fed’s decision to freeze tightening. Agreeing the yields would continue to fall, CI Capital’s Hany Farahat said the only concern would be if oil prices exceed budget forecasts. The government expects oil to cost an average of USD 70 per barrel in FY2019-20.