Loading...
See More

Egypt T-bills yields up on Mursi crisis

Nov 25 2012 18:36 Reuters
egypt

Egyptian President Mohamed Mursi. (AFP)

Related Articles

SA still tops for investment in Africa

$2bn Qatar lifeline for Egypt

Egypt requests World Bank loan

Freedoms conceded

IMF, Egypt to talk about funding

Egypt reaches preliminary deal for loan

 
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
NEXT ON FIN24X

 
 
 

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
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

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