|Board of Governors of the IMF – Wiki Image|
The yield on the government’s one-year treasury bills soared 328 basis points, or 3.28 percentage points, to 13.86 percent since the Jan. 25 revolt that ousted President Hosni Mubarak, the highest since November 2008. The extra yield investors demand to hold Egyptian debt instead of U.S. Treasuries rose 160 basis points for the period to 421, according to JPMorgan Chase & Co.’s data. Middle East spreads climbed 128 basis points on average to 437, the data show.
“They must go to the IMF and the World Bank,” Mona Mansour, co-director of research at Cairo-based investment bank CI Capital, said in a telephone interview. “The government will resort to foreign borrowing because this can’t continue.”