The Central Bank of Egypt received 19 bids totaling $1.041 billion in its USD-denominated treasury bill auction held on Monday. It accepted 15 bids worth $961 million at a 3.75% yield, rejecting those seeking up to 4.25%. Proceeds will refinance a prior USD treasury bill issuance from December 3, 2024.
The Central Bank of Egypt (CBE) held a USD-denominated local treasury bill auction on Monday, attracting 19 bids worth a total of $1.041 billion. The initial offering was sized at $950 million for a 364-day maturity date of December 1, 2026, reflecting robust investor demand. Data from the CBE's website shows the bank accepted 15 bids amounting to $961 million at a 3.75% yield, while turning down those requesting rates up to 4.25%.
The auction proceeds are earmarked to roll over a previous USD treasury bill issuance dated December 3, 2024, for which $980.5 million was accepted and set to mature on Tuesday. Participation is open to domestic banks and foreign financial institutions, with a minimum bid of $100,000 in multiples. The subscription process mirrors that for local-currency bills: primary dealer banks submit bids detailing desired amounts and yields, after which the CBE consolidates and evaluates them to finalize allocations and the cutoff rate.
Yields on these USD treasury bills are shaped by various elements, such as global dollar interest rates, alternative investment options for local and foreign entities, and Egypt's sovereign credit rating.