Today, July 8, 2024, the Central Bank is offering fixed-return treasury bonds worth 8.25 billion pounds, for terms of 2, 3, and 5 years.

According to the Central Bank’s website, the value of the first offering is 3 billion pounds for a period of two years, with an annual return payment period and a coupon rate of 24.7%, while the value of the second offer is 5 billion pounds, with an annual return payment period for 3 years and with a coupon price of 23.85, and the value of the third and final bid is 250 million. EGP for 5 years with a semi-annual interest rate.

The government borrows through treasury bonds and bills over different time periods, and government banks are the largest buyers of them.

What are treasury bonds?

Treasury bonds, in general, are securities of a certain value that governments and companies resort to to obtain financial liquidity to cover their future projects in exchange for profitable returns paid to the buyer in the long term.

This return varies depending on the entity issuing the bond, its size, and its financial suitability, as they are often national governments that want to implement vital projects that have a large return, such as fees paid by citizens in exchange for the services sought from these projects.

At its last meeting, the Monetary Policy Committee decided to keep the interest rates unchanged at 27.25%, 28.25% and 27.75%, respectively, and the credit and discount rates at 27.75%.