{"id":563998,"date":"2021-08-02T13:38:10","date_gmt":"2021-08-02T13:38:10","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/"},"modified":"2021-08-02T13:38:10","modified_gmt":"2021-08-02T13:38:10","slug":"egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/","title":{"rendered":"Egypt expects USD 3-4 bn bond inflows in 2H2021"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-01\"><\/a><strong> Egypt expects to see USD 3-4 bn of foreign inflows into the bond market in<\/strong><strong> 2H2021<\/strong>, Beltone Financial\u2019s chief economist Alia Mamdouh told Bloomberg Daybreak this morning <a href=\"https:\/\/www.bloomberg.com\/news\/videos\/2021-08-02\/egypt-s-macro-outlook-in-focus-video\">(watch, runtime 4:39<\/a>). Portfolio flows should pick up over the next six months if Egyptian debt is made \u201c<a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/8a1b21c3-fa9d-4c13-9002-b4b8712e3e07\">Euroclearable<\/a>\u201d and the country\u2019s local-currency bonds make it back onto JPMorgan\u2019s emerging-market sovereign bond index later this year.<\/p>\n<p><strong>We should hear from JPMorgan by October whether Egypt will be included in the index<\/strong>, which is expected to generate <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/ea858526-5700-49cf-9a6c-4bb9a7b54d2a\">USD 1.4-2.2 bn in inflows<\/a> into EGP-denominated debt. The US investment bank <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/2942a7fd-4cca-4286-98b3-5c2d1c99da8a\">said in April<\/a> it would take a decision within six months.<\/p>\n<p><strong>And a decision from Euroclear is expected at a similar time:<\/strong> Egypt\u2019s bonds could start to be cleared through the Belgium-based clearinghouse <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/95e658a0-969e-43ad-84b1-5ad3188839e2\">between September and November<\/a>, making it easier for foreign funds to get into and out of Egyptian debt.<\/p>\n<p><strong>Egypt made it onto FTSE Russell\u2019s new frontier-market sovereign bond index<\/strong> <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/b180946d-ee6d-4bca-a997-bdcf0c56256a\">launched in June<\/a>, which the Finance Ministry believes should attract another USD 4 bn in foreign inflows.<\/p>\n<p><strong>Foreign holdings have rebounded to new record highs this year<\/strong> following the emerging-market sell-off that accompanied the first wave of the coronavirus in March. Foreign investment in bills and bonds rose to between <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/32c7b2cc-95aa-4cb6-962f-496eade1e38d\">USD 28-29 bn<\/a> at the end of May, after having fallen to a nadir of USD 10.4 bn in May 2020.<\/p>\n<p><strong>We\u2019re already seeing a recovery in foreign inflows into debt: <\/strong>Foreign inflows dropped in March and April 2020 due to the pandemic-induced sell-off, but hot money started <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/a02f6809-1380-4df3-863e-2926ff19819f\">coming back<\/a> to the country in May of the same year to reach USD 23 bn by the end of last November, up from USD 21.1 bn six weeks earlier.<\/p>\n<p><strong>Where are yields headed?<\/strong> Bond yields are also expected to stay elevated at current levels of 15-15.2% until the end of 2021, with an expected \u201cslight\u201d uptick in 2022 with the rise of corridor rates, Mamdouh said.<\/p>\n<p><strong>Rising global commodity prices to start making their mark on Egypt:<\/strong> An uptick is expected in inflation rates that will likely average 6.9% in 2H2021 compared to 4.5% in 1H2021 due to rising global commodity prices and a recovery in spending patterns, she said.<\/p>\n<p><strong>Rate hike in 2022?<\/strong> As a result, Beltone is expecting the central bank to raise interest rates by 100 bps during 2H2022.<\/p>\n<p><strong>The CBE will likely <\/strong><strong><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/597c7a82-ab0a-4b2c-a706-8bd715c974fe\">leave interest rates on hold<\/a><\/strong><strong> for the sixth consecutive meeting<\/strong> with a close eye on rising commodity prices, our recent Enterprise poll says.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Egypt expects to see USD 3-4 bn of foreign inflows into the bond market in 2H2021, Beltone Financial\u2019s chief economist Alia Mamdouh told Bloomberg Daybreak this morning (watch, runtime 4:39). Portfolio flows should pick up over the next six months if Egyptian debt is made \u201cEuroclearable\u201d and the country\u2019s local-currency bonds make it back onto [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":563999,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10034],"tags":[82,104,633],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-563998","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-speed-round-economy","tag-bonds","tag-economy","tag-enterprisepm","wpautop","entry"],"acf":{"mongo_id":"140b7bfd-70e5-4cbe-9774-f087dcd5d641","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/8\/340.jpg","photo_position":"above","related_issue":[563994],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Egypt expects USD 3-4 bn bond inflows in 2H2021 - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Egypt expects USD 3-4 bn bond inflows in 2H2021\" \/>\n<meta property=\"og:description\" content=\"Egypt expects to see USD 3-4 bn of foreign inflows into the bond market in 2H2021, Beltone Financial\u2019s chief economist Alia Mamdouh told Bloomberg Daybreak this morning (watch, runtime 4:39). Portfolio flows should pick up over the next six months if Egyptian debt is made \u201cEuroclearable\u201d and the country\u2019s local-currency bonds make it back onto [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-02T13:38:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2021\/8\/340.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Egypt expects USD 3-4 bn bond inflows in 2H2021\",\"datePublished\":\"2021-08-02T13:38:10+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/\"},\"wordCount\":417,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2021\/8\/340.jpg?fit=%2C&ssl=1\",\"keywords\":[\"Bonds\",\"economy\",\"EnterprisePM\"],\"articleSection\":[\"SPEED ROUND: ECONOMY\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/egypt-expects-usd-3-4-bn-bond-inflows-in-2h2021\/\",\"name\":\"Egypt expects USD 3-4 bn bond inflows in 2H2021 - 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emerging-market government bonds index in 2H2021, unlocking up to USD 4.8 bn in new inflows from passive funds that track the index, and potentially leading to a 5% EGP appreciation against the USD, Rand Merchant Bank economist Neville Mandimika told\u2026","rel":"","context":"In &quot;DEBT WATCH&quot;","block_context":{"text":"DEBT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/debt-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":561944,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/27\/egypts-inclusion-in-jpmorgans-bond-index-could-be-less-lucrative\/","url_meta":{"origin":563998,"position":1},"title":"Egypt\u2019s inclusion in JPMorgan's bond index could be less lucrative","author":"enterpriseam admin","date":"27 April 2021","format":false,"excerpt":"Inclusion in the JPMorgan bond index may not be quite as lucrative as first thought: Egypt could see inflows worth USD 1.4-2.2 bn in the local currency bond market if JPMorgan reincludes it in its emerging-market government bond index, research analysts at the investment bank have said, according to Reuters.Finance\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/4\/281.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":543430,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/02\/01\/egypt-rejoins-jpmorgan-bond-index\/","url_meta":{"origin":563998,"position":2},"title":"Egypt rejoins JPMorgan bond index","author":"enterpriseam admin","date":"1 February 2022","format":false,"excerpt":"Egypt rejoined JPMorgan\u2019s emerging-market bond index following a decade of absence yesterday in a move that could bring new passive flows into the local debt market. Fourteen EGP bonds worth around USD 26 bn have been added to the JPMorgan GBI-EM Global Diversified Index, giving Egypt a weighting of 1.85%,\u2026","rel":"","context":"In &quot;DEBT WATCH&quot;","block_context":{"text":"DEBT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/debt-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/2\/2.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":556181,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/10\/14\/our-sovereign-debt-should-finally-be-back-on-jpmorgan-ems-govt-debt-index-in-january-2022\/","url_meta":{"origin":563998,"position":3},"title":"Our sovereign debt should finally be back on JPMorgan EMs gov\u2019t debt index in January 2022","author":"enterpriseam admin","date":"14 October 2021","format":false,"excerpt":"Egypt is expected to make it back onto JPMorgan\u2019s emerging-market sovereign bond index by the end of January 2022, the US investment bank said in a research note picked up by Reuters. The country is eligible for a weight of close to 1.85%, with 14 government bonds with a combined\u2026","rel":"","context":"In &quot;DEBT WATCH&quot;","block_context":{"text":"DEBT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/debt-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/10\/155.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":553907,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/13\/egypt-to-rejoin-jpmorgan-em-bond-index-in-january-2022\/","url_meta":{"origin":563998,"position":4},"title":"Egypt to rejoin JPMorgan EM bond index in January 2022","author":"enterpriseam admin","date":"13 December 2021","format":false,"excerpt":"Egypt is set to join JPMorgan\u2019s Emerging Markets Bond Index (EMBI) by the end of January with an estimated weight of 1.8%, Finance Minister Mohamed Maait announced yesterday, according to a cabinet statement. Some 14 government bonds, with a total value of USD 26 bn, are expected to enter the\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/12\/317.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":562871,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/09\/good-news-for-bond-inflows-as-egypt-added-to-ftse-frontier-bond-index\/","url_meta":{"origin":563998,"position":5},"title":"Good news for bond inflows as Egypt added to FTSE frontier bond index","author":"enterpriseam admin","date":"9 June 2021","format":false,"excerpt":"Egypt is now part of the FTSE Russell\u2019s new bond index, which tracks local currency bonds issued in frontier markets, the index provider said in a statement yesterday. The Frontier Emerging Markets Government Bond Index Series contains a cap-weighted index and a 10% country-capped index and tracks the performance of\u2026","rel":"","context":"In &quot;MARKET WATCH&quot;","block_context":{"text":"MARKET WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/market-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/6\/131.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/563998","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=563998"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/563998\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/afternoon\/563994"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/563999"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=563998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=563998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=563998"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=563998"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=563998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}