CAIRO, July 3 (Reuters) - Egypt cancelled its sale of a five-year treasury bond at an auction on Monday, data from the central bank showed, reportedly due to the high yields demanded by potential buyers.
“The interest rates on the five-year bonds were very exaggerated, reaching 23.55 percent, and thus we decided to cancel the sale,” said a finance ministry official who preferred not to be named.
At the last auction, on June 19, average yields on the five-year bonds fell to 18.349 percent from 18.475 percent at the previous auction.
“It seems that banks are waiting for the results of the Monetary Policy Committee on Thursday and therefore they set high interest rates,” the official added.
Egypt’s central bank holds a policy-setting meeting on Thursday. (Reporting by Arwa Gaballa and Abdelrahman Adel; Editing by Robin Pomeroy and Hugh Lawson)