The Central Bank of Egypt (CBE) received 19 bids totaling $1.041bn in its USD-denominated local treasury bill auction held on Monday.
The offering, originally sized at $950m for a 364-day tenor maturing on 1 December 2026, drew strong investor interest. According to data published on the CBE’s website, the bank accepted 15 bids worth $961m at a yield of 3.75%, while rejecting offers that requested yields of up to 4.25%.
Proceeds from the auction will be used to refinance a previous USD-denominated treasury bill issuance from 3 December 2024, for which $980.5m had been accepted and which matures on Tuesday.
The CBE allows both domestic banks and foreign financial institutions to participate in these auctions, with a minimum subscription of $100,000 and multiples thereof. Subscriptions follow the same process as for local-currency bills: primary dealer banks submit bids specifying the desired amount and yield, after which the CBE aggregates and reviews the offers before determining the accepted allocation and rate.
Yields on USD-denominated treasury bills are influenced by several factors, including global dollar interest rates, alternative investment opportunities available to local and foreign institutions and Egypt’s sovereign credit rating.
