030401

~~~~~((#))016002000c-Government & Corporate Bonds

Egypt offers 91-day Treasury bills worth 1.0 billion pounds

CAIRO: The Egyptian Finance Ministry offered 91-day Treasury bills worth 1.0 billion pounds ($174 million) on Monday for auction on April 2 and issue a day later. No 91-day bills are due to mature next week.

The average yield on the 91-day bills at the previous auction on March 26 was 13.593 percent, the highest yield on Reuters' records dating back to late 1996 and much higher than mid-January yields of under five percent.

Egypt has been striving to support the pound after it weakened sharply against the dollar since its end-January flotation and key foreign exchange sources like tourism declined because of the US-led war against Iraq.

Higher interest rates should lend support to the currency. Policy prior to the flotation was to promote lower interest rates to stimulate a recovery in economic growth that has slowed sharply since mid-2000. Egypt's economy is considered a "regional tiger" for its strong growth in the late 1990s.-Reuters