{"id":637348,"date":"2017-11-14T04:08:32","date_gmt":"2017-11-14T04:08:32","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2017\/11\/14\/signals-that-foreign-appetite-for-egp-t-bill-might-have-peaked\/"},"modified":"2017-11-14T04:08:32","modified_gmt":"2017-11-14T04:08:32","slug":"signals-that-foreign-appetite-for-egp-t-bill-might-have-peaked","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2017\/11\/14\/signals-that-foreign-appetite-for-egp-t-bill-might-have-peaked\/","title":{"rendered":"Signals that foreign appetite for EGP T-bill might have peaked?"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-04\"><\/a> <strong>Foreign holdings of Egyptian T-bills fell for the first time since the EGP<\/strong><strong> was floated in November 2016 as maturing notes exceeded new purchases<\/strong>, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2017-11-13\/overseas-egypt-t-bill-holdings-drop-for-first-time-since-float\">Ahmed Feteha writes for Bloomberg<\/a>. He says the drop in holding could suggest that demand for Egyptian debt is peaking. \u201cThe flow of new money and the appetite to renew maturing notes may be waning due to seasonal factors,\u201d Samy Khallaf, head of the Finance Ministry\u2019s public debt division, said noting that overseas investors held EGP 330.0 bn worth of T-bills, down from EGP 333.6 bn a week earlier. \u201cWe\u2019re still seeing purchases from foreign investors, but maturities this quarter are larger than the previous one \u2026 We\u2019re also entering the holiday season so it is normal to see lower activity from foreign funds,\u201d Khallaf explained. This comes as the CBE sold EUR 692.9 mn in one-year T-bills yesterday, <a href=\"http:\/\/af.reuters.com\/article\/commoditiesNews\/idAFC6N1J801L\">Reuters reported<\/a>. The EUR-denominated T-bills carried an average yield of 1.499%. The average yield on Egypt\u2019s three- and seven-year treasury bonds rose <a href=\"https:\/\/uk.reuters.com\/article\/egypt-treasury-bonds\/average-yields-on-egypts-3-and-7-year-t-bonds-rise-idUKL8N1NJ3Y7\">in yesterday\u2019s auctions<\/a>.<\/p>\n<p><strong>Some foreign money managers who have been bullish on Egypt\u2019s debt see the play <\/strong><strong>waning given the potential that the <\/strong>CBE may cut interest rates this coming Thursday. High rates today have made Egypt\u2019s bonds one of the most attractive emerging market debts, and political concerns loom in their minds, <a href=\"https:\/\/www.wsj.com\/articles\/yield-hungry-investors-follow-their-appetites-to-egypt-1510578001\">writes Ira Iosebashvili for the Wall Street Journal<\/a>. \u201cThe [carry] trade is a little bit exhausted,\u201d said Jan Dehn, head of research at Ashmore Group, which owned Egypt\u2019s local currency bonds earlier this year. \u201cI think it\u2019s on its last legs,\u201d he added. Jim Barrineau, co-head of emerging-market debt at Schroders, said concerns over high inflation pushed him recently to sell Egyptian local currency bonds his firm had invested in earlier this year. \u201cIt was a very good trade,\u201d Barrineau said. \u201cBetter to sell now than \u2026 when everyone is trying to get out at once.\u201d <strong>Y\u2019all go enjoy your negative rates in Europe, okay?<\/strong><\/p>\n<p><strong>One factor which may keep the bonds at play for investors are guarantees of repatriation<\/strong>, argues Iosebashvili. \u201cOne of the things we wanted to know was whether we can get our [greenbacks] back,\u201d said Colm McDonagh, head of emerging-markets fixed income at U.K.-based Insight Investment. He said his firm holds Egyptian bonds, which it purchased in February.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Foreign holdings of Egyptian T-bills fell for the first time since the EGP was floated in November 2016 as maturing notes exceeded new purchases, Ahmed Feteha writes for Bloomberg. He says the drop in holding could suggest that demand for Egyptian debt is peaking. \u201cThe flow of new money and the appetite to renew maturing [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"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":[8572],"tags":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-637348","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"6e65800f-0ccd-4982-b13f-6a51c083365e","order":"0","is_powered_by":true,"section_story_id":"43f098f7-e358-4eb8-8783-f5f0d4b8a8cd","story_type":"1","photo_url":"","photo_position":"above","related_issue":[637338],"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>Signals that foreign appetite for EGP T-bill might have peaked? - 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\/2017\/11\/14\/signals-that-foreign-appetite-for-egp-t-bill-might-have-peaked\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Signals that foreign appetite for EGP T-bill might have peaked?\" \/>\n<meta property=\"og:description\" content=\"Foreign holdings of Egyptian T-bills fell for the first time since the EGP was floated in November 2016 as maturing notes exceeded new purchases, Ahmed Feteha writes for Bloomberg. He says the drop in holding could suggest that demand for Egyptian debt is peaking. \u201cThe flow of new money and the appetite to renew maturing [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2017\/11\/14\/signals-that-foreign-appetite-for-egp-t-bill-might-have-peaked\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2017-11-14T04:08:32+00:00\" \/>\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\/2017\/11\/14\/signals-that-foreign-appetite-for-egp-t-bill-might-have-peaked\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/11\/14\/signals-that-foreign-appetite-for-egp-t-bill-might-have-peaked\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Signals that foreign appetite for EGP T-bill might have peaked?\",\"datePublished\":\"2017-11-14T04:08:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/11\/14\/signals-that-foreign-appetite-for-egp-t-bill-might-have-peaked\/\"},\"wordCount\":395,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"keywords\":[\"EnterpriseAM\",\"SPEED ROUND\"],\"articleSection\":[\"Speed Round\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/11\/14\/signals-that-foreign-appetite-for-egp-t-bill-might-have-peaked\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2017\/11\/14\/signals-that-foreign-appetite-for-egp-t-bill-might-have-peaked\/\",\"name\":\"Signals that foreign appetite for EGP T-bill might have peaked? 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Overseas holdings of T-bills amounted to EGP 60.8 bn (USD 3.3 bn) as of March 14, the Finance Ministry\u2019s head of public debt Samy Khallaf said in an interview. The number\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":645224,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/07\/16\/foreign-investments-in-egypts-debt-remains-strong\/","url_meta":{"origin":637348,"position":1},"title":"Foreign investments in Egypt\u2019s debt remains strong","author":"enterpriseam admin","date":"16 July 2017","format":false,"excerpt":"Meanwhile, foreign interest in Egyptian debt remains strong. Foreign holdings of Egyptian debt topped EGP 204 bn (USD 11.4 bn) as of 11 July, the last treasury sale before Thursday's, the head of public debt at the Finance Ministry Sami Khallaf told Reuters on Thursday. Foreigners bought EGP 7.9 bn\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":651443,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/02\/13\/foreign-investors-scoop-egyptian-debt-bring-rates-down\/","url_meta":{"origin":637348,"position":2},"title":"Foreign investors scoop Egyptian debt, bring rates down","author":"enterpriseam admin","date":"13 February 2017","format":false,"excerpt":"Reason #321 to be optimistic about the outlook for the economy: Foreign investors bought 97.5-98.5% of the T-bills Egypt sold on Thursday, Samy Khallaf, head of the public debt department at the Finance Ministry, told Bloomberg. The demand pulled the average yield on the six-month T-bills by almost 200 bps,\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":644751,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/07\/03\/eurobond-issuance-in-september\/","url_meta":{"origin":637348,"position":3},"title":"Eurobond issuance in September","author":"enterpriseam admin","date":"3 July 2017","format":false,"excerpt":"Another Eurobond issuance coming in September? It appears that the Finance Ministry is considering another EUR-denominated bond issuance in September, government sources reportedly told Al Borsa. The issuance will be to the tune of EUR 1-1.5 bn, a less ambitious target than previous eurobond sales in order to \u201cget a\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":595782,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/08\/06\/demand-on-egypts-shorter-term-t-bills-is-showing-signs-of-waning\/","url_meta":{"origin":637348,"position":4},"title":"Demand on Egypt\u2019s shorter term T-bills is showing signs of waning","author":"enterpriseam admin","date":"6 August 2019","format":false,"excerpt":"Government sells fewer 3-month T-bills than targeted \u2014 is this a sign of a trend? The government sold EGP 5.2 bn of 3-month T-bills in a Sunday auction out of EGP 9.25 bn targeted, CBE data shows. Average yields for the 3-month notes came at 17.899% \u2014 a marginal increase\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":649271,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/04\/27\/foreign-holdings-of-egyptian-debt-increased-to-egp-91-8-bn\/","url_meta":{"origin":637348,"position":5},"title":"Foreign holdings of Egyptian debt increased to EGP 91.8 bn","author":"enterpriseam admin","date":"27 April 2017","format":false,"excerpt":"Foreign investors have reportedly grown their holdings of Egyptian treasuriesto EGP 91.8 bn since the EGP float, Al Borsa reports, citing government sources. Foreign investors snapped up EGP 1.4 bn in T-bills in Sunday\u2019s offering alone, the newspaper said on Wednesday. By Bloomberg\u2019s last count (citing the Finance Ministry), the\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/637348","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=637348"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/637348\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/637338"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=637348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=637348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=637348"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=637348"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=637348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}