By: Heba El-Kordy

Cairo – Mubasher: Egypt’s debt instruments have remained attractive to foreign investors, despite four rate cuts during 2019.

The yield on five-year treasury bonds (T-bonds) offered in an auction on Monday registered its lowest level since March 2015, according to a survey conducted by Mubasher. 

The Central Bank of Egypt’s (CBE) data indicated that the average yield on five-year notes stood at 13.818%, hitting its lowest level nearly five years ago when the yield averaged 12.91%. 

Moreover, the yield on ten-year T-bonds offered in Monday’s auction reached its lowest level since 19 November at 13.83%.

Amid trade tensions between the US and China, foreign investment funds injected $490 million into Egypt’s T-bills, Fakhry Elfiky, a board member at the CBE, said.

For her part, Aliaa Mamdouh, a senior analyst at Beltone Financial, said that government debt instruments are expected to continue to attract foreign investments despite the reduction in interest rates as they are still attractive as compared to those in emerging markets such as Argentine and Turkey.

It is noteworthy that since early 2019, the EGP increased by more than 10% against the US dollar.