{"id":545649,"date":"2022-04-06T04:04:56","date_gmt":"2022-04-06T04:04:56","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/04\/06\/sovereign-bond-sales-are-on-the-up-and-egypt-could-be-the-biggest-issuer-in-the-region-in-2022\/"},"modified":"2022-04-06T04:04:56","modified_gmt":"2022-04-06T04:04:56","slug":"sovereign-bond-sales-are-on-the-up-and-egypt-could-be-the-biggest-issuer-in-the-region-in-2022","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/04\/06\/sovereign-bond-sales-are-on-the-up-and-egypt-could-be-the-biggest-issuer-in-the-region-in-2022\/","title":{"rendered":"Sovereign bond sales are on the up \u2014 and Egypt could be the biggest issuer in the region in 2022"},"content":{"rendered":"

<\/a> Global sovereign bond sales will hit USD 10.4 tn this year<\/strong>, almost a third above the pre-covid average, S&P Global Ratings said in a report picked up by Reuters<\/a>. The crisis in Ukraine combined with lots of refinancing will push up the amount of borrowing despite economies around the world recovering from the shock of the pandemic, the ratings agency said.<\/p>\n

Egypt will become the biggest issuer of sovereign debt in EMEA this year<\/strong>, according to S&P, which forecasts the country to sell USD 73 bn in bonds, overtaking Turkey. Regionally, sovereign borrowing in EMEA will grow by USD 253 bn to reach USD 3.4 tn by the end of 2022.<\/p>\n

Egypt, Kenya and Japan have the largest debt piles in need of refinancing this year<\/strong>, according to the report. Approximately 26% of the North African country\u2019s debt will need to be rolled over this year, it said. (Editor\u2019s note: We could not track down the report to independently verify the figures.)<\/p>\n

Debt and equity markets took a tumble yesterday\u2026 <\/strong>Yields on US treasuries hit their highest level in three years amid a wider sovereign bond sell-off, the Financial Times<\/a> reports. Meanwhile, stocks dropped, with the S&P 500 dipping 1.3% and the tech-heavy Nasdaq falling more than 2% \u2014 its biggest daily percentage drop in almost a month, CNBC<\/a> notes.<\/p>\n

\u2026thanks in part to harsh words from the Fed: <\/strong>The selloff came following hawkish comments earlier in the day from senior Fed official Lael Brainard. The US central bank will start to reduce its USD 9 tn balance sheet \u201cat a rapid pace\u201d as early as its next meeting in May, and is prepared to take \u201cstronger action\u201d to rein in inflation, Brainard said<\/a>. The Fed has already said it will consider larger, half-point rate hikes<\/a> going forward. The market is now expecting rates to be increased at each of the central bank\u2019s six meetings this year, with hikes potentially totaling 2.5 percentage points, according to CNBC<\/a>.<\/p>\n

In other financial news:<\/strong><\/p>\n