CAIRO: The average yield on 273-day Egyptian treasury bills eased at a central bank auction on Sunday, the Ministry of Finance announced on its website, their second decline in two weeks.
The central bank sold 3.5 billion Egyptian pounds ($580 million) of the bills, the same amount it had offered. The average yield inched down to 15.886 percent from 15.906 percent at the last auction of 273-day bills on Feb. 21.
Traders said there was more liquidity in Egyptian banks since the central bank raised rates on Egyptian pound deposits. They cited optimism that Egypt may soon secure a loan agreement with the IMF, easing fears of an impending fiscal crisis.
"I think it is a bit early to talk about a trend, but demand is there in auctions," said the head of a bank dealing room in Cairo.
Egypt's net foreign reserves fell by $636 million in February, the central bank said on its website on Sunday, marking a significant slowdown from the sharp decreases of the previous four months.
Optimism for a smooth transition to civilian rule was also growing, said another fixed-income trader.
"With a date now set for presidential elections and a political plan that hopefully will be followed, there is some hope for political stability," the trader said.
The central bank sells T-bills on behalf of the Finance Ministry.
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