• Fin24's biz quiz

    Test your business news in 30 seconds with this Fin24 quiz.

  • Inside Labour

    Brexit should send warning signals to worker organisations everywhere, says Terry Bell.

  • Racial redress

    The next adult generation is at risk of being polarised on the basis of skin colour, says Solly Moeng.

All data is delayed
Loading...
See More

Egypt T-bills yields up on Mursi crisis

Nov 25 2012 18:36
Reuters
Cairo - Yields on Egyptian treasury bills rose on Sunday after a flare-up of political unrest dashed hopes for stability since Islamist President Mohamed Mursi's election in June.

A decree issued on Thursday by Mursi to widen his powers and shield his decisions from judicial review triggered a political crisis and street protests that have left more than 500 people injured.

"The market had priced in a lot of optimism over the past few months, and the incidents that took place over the weekend completely wiped that out," said Youssef Kamel, a fixed-income analyst at Rasmala.

The average yield on 1.5bn Egyptian pounds ($246.35m) of 91-day T-bills rose to 12.494% from 12.299% at an auction last week, while that on 3.5bn pounds of 266-day bills climbed to 13.190% from 12.299% at an auction two weeks ago.

The central bank sold all 5bn pounds of T-bills that were on offer, it said. Yields on 91-day bills had gradually been declining from above 14.75% before Mursi was elected in June.

On Tuesday, Egypt signed a preliminary agreement with the International Monetary Fund for a $4.8bn loan, a step seen as seal of approval to the government's economic programme and vital to shoring up the country's finances.

Mursi's Muslim Brotherhood supporters were expected to turn out again on the streets in a show of support for the president's decree after prayers on Sunday afternoon. More violence is feared as both they and Mursi's opponents are planning massive demonstrations on Tuesday.

"The president's decisions have created further divisions in the country, which could have severe consequences going forward, especially since these decisions have created conflict with the judiciary authority," Kamel said. "Political uncertainty is back near its highest levels."

Egypt's main share index plunged 9.5% on Sunday to its lowest since July 31 in the first trading session since Mursi ignited the political crisis.

The falls were the index's biggest decline since March 2011, when the market reopened after the popular uprising that ousted Hosni Mubarak.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

egypt crisis

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

THE DEBT ISSUE

Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Labour’s call for a cap on salary of high earners is?

Previous results · Suggest a vote

Loading...