Political unrest increases Egypt T-bill yields, investors cautious
Egyptian three- and nine-month treasury bill yields climbed at auction on Sunday, with investors thin on the ground due to concerns over political unrest ahead of anti-government protests planned for June 30.
Opposition parties and activities have called for mass demonstrations to mark the first-year anniversary of the election of Muslim Brotherhood candidate Mohamed Mursi as president.
"Investor sentiment is very cautious going into June 30," said one analyst. "State banks were heavily participating in the auction."
The average yield on 91-day treasury bills edged up to 13.992 percent from 13.963 percent at last week's auction, while that on 266-day T-bills rose to 14.719 percent from 14.669 percent, the central bank said.
The bank had offered 3 billion Egyptian pounds of each maturity, but accepted bids for only 2.25 billion pounds' worth of the 91-day T-bills and 2.5 billion pounds of the 266-day bills.
The stock exchange's benchmark index dropped 2.9 percent - its sixth day of declines - to its lowest level since December 12, also on concern over unrest.