Egypt raised 4 billion pounds ($656 million) in treasury bills Sunday as yields declined after the International Monetary Fund said it expects to send a team to the North African country this month to negotiate a loan.
The Finance Ministry sold 1 billion pounds in 91-day notes and 3 billion pounds in nine-month securities, according to Bloomberg. The average yield on three-month treasury bills declined 23 basis points, or 0.23 percentage point, to 12.71 percent, while the yield on the longer-dated maturities fell to 13.45 percent from 13.55 percent, the data show.
The government is in talks with the IMF for a $4.8 billion loan to restore investor confidence and help lower borrowing costs, which had soared to a record high after last year’s popular uprising. Egypt needs to develop economic policies with broad public support “to ensure that the program that is developed would be implemented,” Masood Ahmed, IMF director for the Middle East and Central Asia, told reporters at a news conference in Tokyo last week.
The pound, subject to a managed float, weakened 0.1 percent in the period to 6.0971 a dollar.