CBE Sells EGP 124.78 Billion in Treasury Bills

The Central Bank of Egypt (CBE) sold EGP 124.78 billion worth of treasury bills in its latest auction, covering maturities of 182 and 364 days, as the government continues to manage domestic liquidity and finance the state budget.

According to auction results, strong demand was recorded across both tenors.

For the 182-day bills, financial institutions submitted 1,417 bids totaling EGP 162.71 billion at an average requested yield of 24.7%. The Ministry of Finance accepted 1,131 bids worth EGP 65.075 billion, at a weighted average yield of 24.41%.

Meanwhile, for the 364-day bills, 1,538 bids were submitted totaling EGP 108.89 billion, with an average requested return of 23.96%. The government accepted 1,380 bids valued at EGP 59.71 billion, at a weighted average yield of 23.46%.

The auction comes after the Monetary Policy Committee of the Central Bank of Egypt decided, at its meeting on December 25, 2025, to cut key policy rates by 100 basis points.

The overnight deposit rate was reduced to 20.00%, the overnight lending rate to 21.00%, and the main operation rate to 20.50%. The discount rate was also lowered by 100 basis points to 20.50%.

Despite the easing cycle, treasury yields remain elevated, reflecting continued tight liquidity conditions and investor appetite for high-yield government instruments.

Upcoming Bond Issuances

Looking ahead, the Central Bank is set to offer EGP 37 billion in fixed and floating-rate treasury bonds. The planned issuance includes:

EGP 10 billion in two-year fixed-rate bonds

EGP 25 billion in three-year fixed-rate bonds

EGP 2 billion in five-year floating-rate bonds

The fixed-rate bonds will carry semi-annual coupon payments, while the floating-rate bonds will offer quarterly returns.

In addition, the CBE is scheduled to auction EGP 75 billion in treasury bills with 91- and 273-day maturities in coordination with the Ministry of Finance, as part of ongoing efforts to fund the fiscal deficit while maintaining orderly market conditions.

Treasury bills are short-term government debt instruments with maturities ranging from three months to one year. They are widely used to cover budgetary financing needs and manage liquidity in the domestic banking system.

The Ministry of Finance authorizes the Central Bank to manage treasury bill and bond issuances throughout the fiscal year, with proceeds allocated to financing the current state budget deficit.