By: Heba El-Kordy

Cairo – Mubasher: The Central Bank of Egypt (CBE) on Monday announced the sale of three- and seven-year treasury bonds (T-bonds) worth EGP 6.8 billion after originally offering T-bonds valued at EGP 4.25 billion on behalf of the Ministry of Finance (MoF).

The average yield on the seven-year notes registered 14.21% after accepting bids worth EGP 3.5 billion, according to data released by the CBE.

In addition, the CBE sold three-year notes worth EGP 3.26 billion at an average yield of 14.36%.

The issuance will be used to finance the country’s budget deficit.

The Ministry of Finance previously revealed plans to diversify its financing sources, noting that it may shift towards long-term debt instruments instead of short-term borrowing after cutting key interest rates. 

On 26 September, the CBE decided to lower key interest rates by 100 basis points (bps).