Middle East & Africa Stay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder.. http://www.brecorder.com/markets/fixed-income/middle-east-a-africa.html Sat, 31 Jan 2015 00:46:24 +0000 SRA Framework 2.0 en-gb Ivory Coast aims to borrow over $1bn http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/220881-ivory-coast-aims-to-borrow-over-$1bn.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/220881-ivory-coast-aims-to-borrow-over-$1bn.html imageABIDJAN: Ivory Coast will next month tap international lending markets for a second time, aiming to raise more than $1 billion in a placement of bonds, the country's finance minister said Thursday.

"The objective is to complete the operation by the end of February 2015 so that the money will be available in March," Daniel Kablan Duncan told a news conference.

Ivory Coast successfully raised $750 million in a eurobond placement last July in its first foray into the international debt markets.

The 10-year bonds were placed with a yield of 5.625 percent, just a month after its international partners wrote off $6.5 billion in development aid.

Duncan did not specify what the next tranche of borrowed money would be used for, but since the country's political crisis ended in 2011 with the installing of Alassane Ouattara as president, the country has stepped up infrastructure spending.

That has helped Ivory Coast achieve growth rates of between 8 and 10 percent the past three years.

Copyright AFP (Agence France-Presse), 2015

s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Middle East & Africa Thu, 29 Jan 2015 20:55:03 +0000
South African debt yields at over 20 month lows, rand softer http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/218015-south-african-debt-yields-at-over-20-month-lows-rand-softer.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/218015-south-african-debt-yields-at-over-20-month-lows-rand-softer.html imageJOHANNESBURG: South Africa's government bonds fell to their lowest in nearly 22 months on Friday, in a market increasingly seeing the chance that slowing inflation due to sliding oil prices will keep interest rates depressed.

The yield on debt maturing in 2026 -- the benchmark for the secondary market -- fell 12.5 basis points to close at 7.355 percent, a level last seen in late May 2013.

Demand by foreign accounts has driven local bonds higher this week, with next inflows reaching slightly more than 4 billion rand ($345 million), according to data from the JSE securities exchange.

"The major theme for at least the first half of the year will be lower inflation, not just in South Africa, but globally," said Asher Lipson, a fixed income analyst at Standard Bank.

"We believe that the markets may be underestimating how low inflation could go in 2015 and thus the reaction to low inflation prints could still move yields lower."

The rand softened against the dollar, tracking a weaker euro after the Swiss National Bank's shock move this week to scrap the cap on the value of its currency fuelled talk of imminent quantitative easing in Europe.

By 1628 GMT the rand traded 0.29 percent lower at 11.5895 to the greenback compared with Thursday's close in New York.

Copyright Reuters, 2015

imad_kueconomist@yahoo.com (Imaduddin) Middle East & Africa Fri, 16 Jan 2015 16:35:23 +0000
Kenyan Treasury bill yields seen rising http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/212227-kenyan-treasury-bill-yields-seen-rising.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/212227-kenyan-treasury-bill-yields-seen-rising.html

imageNAIROBI: Yields on Kenya's Treasury bills are expected to rise slightly at next week's sale, taking a cue from yields on a two-year bond sold this week. The central bank will auction 91-day, 182-day and 364-day Treasury bills worth a total 12 billion shillings ($132.89 million). "I think there is room for rates to go higher.

The two-year bond came up a bit higher so it shows the government can pick at a better rate," Fred Moturi, fixed income trader at Sterling Investment Bank, said.

At this week's auction, the weighted average yield on 91-day Treasury bills dipped to 8.513 percent from 8.595 percent last week, the central bank said.

The yield on the 364-day bill was unchanged at 10.388 percent, while that on the 182-day paper rose to 9.517 percent from 9.450 percent.

The yield on the 2-year Treasury bond rose to 10.890 percent at this week's sale from 10.764 percent at the last sale in July.

Copyright Reuters, 2014

s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Middle East & Africa Fri, 19 Dec 2014 14:33:40 +0000
Nigeria sells 195.5bn naira in T-bills, yields rise http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/212226-nigeria-sells-1955bn-naira-in-t-bills-yields-rise.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/212226-nigeria-sells-1955bn-naira-in-t-bills-yields-rise.html imageLAGOS: Nigeria raised 195.56 billion naira ($1.06 billion) worth of treasury bills with maturities ranging between three months and one year at higher yields this week, the central bank said on Friday.

The bank sold 33.87 billion naira in 3-month treasury bills at 11 percent, compared with 9.99 percent at the Nov. 19 auction.

A total of 51.30 billion naira worth of the six month bill was sold at 13.84 percent, against 10.8 percent previously.

In the one year tenor bill, the bank sold 110.39 billion naira worth at 15.99 percent, compared with 12.48 percent at the last auction.

Copyright Reuters, 2014

s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Middle East & Africa Fri, 19 Dec 2014 14:31:08 +0000
South Africa's 3-month T-Bill average yield edges up to 6.09pc http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/209042-south-africas-3-month-t-bill-average-yield-edges-up-to-609pc.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/209042-south-africas-3-month-t-bill-average-yield-edges-up-to-609pc.html imageJOHANNESBURG: South Africa sold 4.685 billion rand ($418 million) worth of three-month Treasury Bills on Friday, at an average yield of 6.09 percent, up slightly from 6.05 percent last week.

The bid to cover ratio also edged higher to 1.4 from 1.3.

Copyright Reuters, 2014

s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Middle East & Africa Fri, 05 Dec 2014 13:38:47 +0000
Ugandan shilling little changed but expected to strengthen http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/206877-ugandan-shilling-little-changed-but-expected-to-strengthen.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/206877-ugandan-shilling-little-changed-but-expected-to-strengthen.html imageKAMPALA: The Ugandan shilling was little changed on Tuesday though traders were betting on a stronger local currency in the short term, buoyed by inflows from end-of-year spending by non-governmental organisations (NGOs).

At 0946 GMT commercial banks quoted the shilling at 2,745/2,755, a touch stronger than Monday's close of 2,748/2,758.

"NGOs close the year early so we expect significant conversions from them in the coming days," said Isaac Iga, chief dealer at Orient Bank. "Those inflows, added to remittances from emigrant workers, should outweigh any demand."

Local NGOs typically receive donations in hard currency and Isaac said they would be doing conversions to pay salaries for November and December and meet any outstanding operational expenses for the year.

The local currency is down 8.2 percent against the greenback so far this year.

Traders say the local currency is likely to oscillate in the 2,720-2,750 range ahead of the release of November inflation data, which trader's hope will offer clues to the central bank's likely next policy move.

A market note from Mantis, Amsterdam-based frontier markets research firm, said in the long-term the shilling "will continue depreciating at an elevated pace before the general elections in 2016".

The note said the depreciation risk stemmed from uncertainty surrounding the pre-election period and the east African country's current account and fiscal deficits.

Copyright Reuters, 2014

imad_kueconomist@yahoo.com (Imaduddin) Middle East & Africa Tue, 25 Nov 2014 16:36:55 +0000
Kenyan shilling weakens to near 3-year lows on dollar buying http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/206849-kenyan-shilling-weakens-to-near-3-year-lows-on-dollar-buying.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/206849-kenyan-shilling-weakens-to-near-3-year-lows-on-dollar-buying.html imageNAIROBI: Kenya's shilling fell to a new three-year low on Tuesday, weakened by concerns the central bank has wiped out some of its reserves and due to falling revenue from the tourism and tea sectors, while shares also retreated.

At the 1300 GMT close of trade, commercial banks posted the shilling at 90.30/90.40 against the dollar, weaker than Monday's closing level of 90.05/90.25 against the dollar.

"People are waiting to see if the central bank will intervene again," said Ian Kahangara, a trader at the National Bank of Kenya. He added the shilling had been negatively impacted by recent interventions that had wiped out some of its reserves.

The central bank sold dollars on Thursday and Friday last week to prop up the shilling, on both occasions offering dollars when the local currency was around the 90.30-level.

The shilling has weakened by 4.64 percent against the dollar so far this year, under pressure from a fall in revenues from tourism, a major hard currency earner that has been affected by a spate of militant attacks in East Africa's biggest economy.

In the stock market, the benchmark NSE-20 share index fell 0.2 percent to close at 5137.94.

Traders said the shilling still had a weakening bias after retreating on Monday after Islamist militants ambushed a bus and killed 28 people near the Somali border at the weekend.

Copyright Reuters, 2014

imad_kueconomist@yahoo.com (Imaduddin) Middle East & Africa Tue, 25 Nov 2014 15:53:52 +0000
Egypt sold $1.796bn of dollar-denominated T-bills http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/206605-egypt-sold-$1796bn-of-dollar-denominated-t-bills.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/206605-egypt-sold-$1796bn-of-dollar-denominated-t-bills.html imageCAIRO: Egypt's central bank said it sold $1.796 billion in one-year dollar-denominated treasury bills to local banks and foreign financial institutions on Monday, more than the bank had expected when it announced the auction.

The government has relied mainly on the local money market to finance its public deficit since a popular uprising in early 2011 that deterred many foreign investors.

Announcing thhe auction last Thursday, the central bank said it intended to sell $1.75 billion of dollar-denominated bills.

The sale rolls over an expiring T-bill, two traders at Egyptian banks and a government source said. Egypt last issued a dollar-denominated bill in June.

Last Monday it sold 734.3 million euros ($919 million) in euro-denominated one-year treasury bills, exceeding its plans to sell 650 million euros. The average yield was 1.894 percent.

Copyright Reuters, 2014

s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Middle East & Africa Mon, 24 Nov 2014 13:31:01 +0000
Egypt sells 734.3mn euros of 1-year T-bills: central bank http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/205245-egypt-sells-7343mn-euros-of-1-year-t-bills-central-bank.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/205245-egypt-sells-7343mn-euros-of-1-year-t-bills-central-bank.html imageCAIRO: Egypt's central bank said on Monday it had sold 734.3 million euros ($917.80 million) in euro-denominated one-year treasury bills at an average yield of 1.894 percent.

The government has turned mainly to the local money market to finance its public deficit since Egypt's popular uprising in early 2011 deterred most foreign investors.

Copyright Reuters, 2014

imad_kueconomist@yahoo.com (Imaduddin) Middle East & Africa Mon, 17 Nov 2014 11:53:08 +0000
South Africa's bonds, rand end week firmer http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/204853-south-africas-bonds-rand-end-week-firmer.html http://www.brecorder.com/markets/fixed-income/middle-east-a-africa/204853-south-africas-bonds-rand-end-week-firmer.html imageJOHANNESBURG: Yields on South African government bonds dropped to two-week lows on Friday, reflecting an upbeat mood in emerging markets as a falling oil price improves prospects for benign inflation.

The South African Reserve Bank is due decide on interest rates next week and dealers say the combination of moderating inflation domestically, a relatively stable rand and the lower price of Brent crude should see the central bank stay put on interest rates.

The yield on the benchmark 2026 bond fell 7.5 basis points to 7.85 percent, its lowest since Oct.31 when it hit the year's low. The currency gained nearly 0.6 percent to 11.1445/dollar as importers took advantage of the current levels.

"The local fixed income and currency markets strengthened over the past five trading days, broadly in line with favourable emerging market financial market movements and possibly on the back of better performances recorded across the US Treasury curve," Asher Lipson, a fixed income strategist at Standard Bank said.

Standard Bank said offshore investors were net buyers of 2.15 billion rand of government bonds in the past five days with buying across all maturities.

Foreigners had sold 600 million in local debt last week. Next week investors will also have inflation numbers to contend with. Prices are expected to have steadied in October, but if they surprise to the downside, it will add to views that the central bank will not raise interest rates until next year.

The week will open with a speech in Cape Town by Reserve Bank Deputy Governor Francois Groepe at 0645 GMT, where the market will look for any clues on the bank's expected revisions to growth and inflation estimates compared to its last rates decision in September.

Copyright Reuters, 2014

s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Middle East & Africa Fri, 14 Nov 2014 15:50:53 +0000