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Egypt’s central bank sold 10.2 billion Egyptian pounds ($1.7 billion) of seven-day repurchase agreements, accepting all bids as it seeks to curb rising borrowing costs. The North African country’s regulator had made available contracts valued at 12 billion pounds, according to central bank data on Bloomberg. The agreements allow government security holders to sell the notes back to the regulator to access funds for a week at 9.75 percent.
Pressure on funds at local banks after the withdrawal of foreign investors from the domestic debt market over the last year has increased borrowing costs for the government and hampered its ability to raise money. The central bank responded last March by starting the repurchase facility.
The yield on Egypt’s 5.75 percent dollar bonds due in April 2020 declined for the first time in six days, losing 15 basis points, or 0.15 of a percentage point, to 7.21 percent at 4:40 p.m. in Cairo, according to prices compiled by Bloomberg. The pound was little changed at 6.0336 a dollar.
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