The Central Bank of Egypt will offer a treasury bill auction in US dollars worth $950 million on Monday, with a 364-day tenor maturing on December 1, 2026. Proceeds will repay a previous issuance from December 3, 2024. This follows recent auctions with strong demand and relatively low yields.
The Central Bank of Egypt (CBE) plans to hold a local treasury bill auction in US dollars on Monday, totaling $950 million, with a 364-day tenor maturing on December 1, 2026. The proceeds will repay a prior treasury bill issuance offered on December 3, 2024, where bids worth $980.5 million were accepted and which matures on Tuesday.
In a recent context, the CBE conducted a similar auction on November 11 this year for $1.5 billion, with a 363-day tenor maturing on November 10, 2026. It received 28 bids amounting to $1.6673 billion, accepting 21 bids for $1.5473 billion at a yield of 3.749%, about half a percentage point lower than the 4.25% yield of the comparable auction on June 2. The CBE rejected some bids requesting yields up to 4.3%.
The central bank permits local banks and foreign institutions to subscribe, with a minimum of $100,000 and multiples. Subscriptions follow the same process as local-currency treasury bills, where primary dealer banks submit requests to the CBE specifying amounts and desired yields. The yield is set based on factors like global dollar interest rates, alternative investment options for local and foreign banks, and the country's credit rating.