The Central Bank of Egypt (CBE)، on behalf of the Ministry of Finance، issued EGP 1.7 billion ($67.16 million) in treasury bonds on Monday.
The T-bonds were offered in two installments، with the first valued at EGP one billion with a three-year term and the second worth EGP 750 million with a seven-year term.
Earlier this year، Egypt canceled bids for treasury bills four times، each worth EGP 3.5 billion، amid calls to raise its interest rates.
The Central Bank of Egypt’s Monetary Policy Committee kept interest rates unchanged for the fourth time this year during September meeting، setting the overnight deposit rate and the overnight lending rate at 16.75 percent and 17.75 percent، respectively.
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.
The longer the maturity date، the higher the interest rate that the T-Bill will pay to the investor.