Sales of Egyptian treasury bonds plummet for fear of a drop in the Egyptian pound. Sales of Egyptian 3-year Treasury bonds issued on Tuesday plunged to 1.09 million Egyptian pounds ($35,332), after the government refrained from increasing the yield demanded by investors worried about the possibility of a near depreciation of the currency. The Central Bank received 26 requests worth 5.77 billion pounds, with an average potential return of 24.15%, in the Monday auction, but it only accepted one with a return of 21.7%, and the acceptable return did not change from a similar offer on March 21, when bonds worth 5.06 billion pounds were sold despite the increase The overnight deposit rate rose 200 basis points to 18.75% on Thursday. Analysts say investors have stopped buying bonds because Treasury yields are expected to soon start rising to match the increase in overnight interest rates. The central bank said it raised interest rates to help curb spiraling inflation, which jumped to 31.9% in February. February. Analysts say pressure is mounting on Egypt to devalue its currency, which has declined on the black market in the past few weeks, even though its official rate has halved against the dollar over the past year. Bankers and traders said that the official rate of the pound has changed little over the past four weeks at 30.9 to the dollar, while the dollar on the black market ranged between 36 and 37 pounds.

Sales of Egyptian 3-year treasury bonds plunged on Tuesday, after the government refrained from increasing the yield demanded by investors worried about the possibility of a near depreciation of the currency.

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