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Egypt Downsizes T-Bill Offering On Weak Investor Interest, 3 Month Bill Rate Jumps To 11%
Today Egypt came to market in an attempt to pull a Geithner, and fund $2.52 billion worth of deficit spending at the expense of external investors: a privilege for which it was prepared to pay a lot of money. And even despite ultimately paying a rate of 10.972% that even Portugal would cower in fear and shame from, the Egyptian Central Bank was forced to reduce the size of its combined 15 billion Bill offering by over 2 billion Egyptian pounds as interest just wasn't there.
From Reuters:
Egypt's central bank reduced the size of its 15 billion Egyptian pound ($2.52 billion) Treasury bill offering on Monday, a banker said.
The bank had been offering 8 billion Egyptian pounds in 91-day bills, but was now only selling 7 billion pounds worth, the banker said.
Other maturities were also reduced, but the banker did not say by how much. The central bank was also offering 5 billion pounds in 182-day bills and 2 billion pounds in 273-day bills.
The average yield of 91-day bills sold on Monday was about 11 percent, up from 9.5 percent at the last sale before political unrest closed the banking system for a week, the banker said.
And now that Egyptian central banks are finally back in operation, even if on a very truncated schedule, we will be keeping a close eye on the total amount of deposits in circulation. After all with everyone printing money, the E(gyptian)CB will be stupid to pretend it is monetarily prudent. And what is a 20% drop in one's currency between friends. At last check one dollar was worth 5.952 Egyptian pounds. It won't be worth that for long.
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Bennie will buy them. Bennie will buy ANYTHING.
they probly confirmed he would buy them before the issuance.
...provided it's sold by a Primary Dealer, and is "a really great deal (*)".
(*) For the PD.
Will buy anything -- except his own dollar!
Short Emerging Markets Megabubble
The same like in 2007
Watching the protesters throwing rocks at each other I am struck by our differences...mostly attributable to this.
2nd Amendment – 9th Circuit Judge Honestly Describes Why It Exists!Looks like Egypt will have to reconsider the possibility of charging a thousand bucks per tour of the pyramids. Lol.
On a serious note, Does anyone else here find it interesting that even with an uprising to change the current government of Egypt, the people still find themselves on the hook for all the debts they currently owe.
Once we get our marines there stabiltity will be restored. We will hoist our flag in Cario and Obama will finally have his 57th state.
By stability, you mean that their tourist industry will be restored right?
SAY CHEESE BITCHEZ!! GROUP PORTRAIT TIME!!
Absolutly, we allready have pyramids on our fiatsco bills. Egypt would make a fine addition to the republic.
Things just resist to calm down. Sometime down the road POMO simply wont be enough to ease consernes about next global economical dip - and, contrary to what majority thinks it will happen soon, probably this month.
I thought the Egypt uprising was the start of something big!.. then just fizzled out.
Crude also didn't move much higher and is falling again. Not even a pseudo revolt beats weak demand.
One side pelting the other with stones on a dollar a day and an empty stomach will put a damper on the revolting spirit.. they've been beaten so long they can't get up.. and Mubarak knows it.
Iran's economy will soon also go down the drain!!
THE GIFTSHOP OF THE IRANIAN GOVERNMENT IS DOWN!!!
http://www.president.ir/en/?ArtID=24814#
Just as I wanted to order a nice rug...
Pakistan vs India will put Equities -50% remember my face....
Just 10 more days like today and we'll see 10Y yield at 4%!
The Fed will buy them, conceal evidence of the purchase to the public, then Ben will say the Fed works in the interest of the people, that it is transparent and needs no further oversight.
I hear Israel is about to get 10 million surprise guests. Word in the Promise Land is too much is never enough!
FAIL
Egypt is f*cked if they can't get that interest rate to drop.