Bond Market Offering 21% Yields Finally Turns Egypt Into a Buy
- Currency breaches trading band for first time since March
- Cheap pound helps attract over $9 billion to local debt market
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Egypt is clawing itself back in favor with international investors after being shunned for more than six years, but it’s having to pay returns only eclipsed by Argentina.
The Egyptian Treasury bill market attracted more than $9 billion since the central bank allowed the currency to trade more freely in November, triggering a sharp devaluation and jump in interest rates. The country hasn’t managed to bring in that kind of money since 2010, before the Arab Spring revolution.