Egypt will auction $1 billion worth of one-year dollar-denominated treasury bills next Monday، the central bank of Egypt (CBE) said on Sunday.
The auction will be settled on Tuesday، the bank said.
One-year bills worth about $1.15 billion are due to mature on the same day. The average yield on those bills was 3.495 percent.
In the last dollar-denominated treasury bill auction، on Nov 19، the average yield was 3.697 percent. Noteworthy، a Treasury bill (T-Bill) is a short-term debt obligation backed by the Treasury Dept. of the U.S. government with a maturity of less than one-year، sold in denominations of $1،000 up to a maximum purchase of $5 million. T-bills have various maturities and are issued at a discount from par، according to Investopedia.
When an investor purchases a T-Bill، the U.S. government effectively writes investors an IOU; they do not receive regular interest payments as with a coupon bond، but a T-Bill does include interest، reflected in the amount it pays when it matures.