Treasury Bonds
السندات الحكومية
Treasury bonds are longer-term debt securities issued by the Egyptian government (several years to maturity) that pay periodic interest (a coupon) and return the principal at maturity. They carry more interest-rate sensitivity than treasury bills but offer a fixed income stream, and they underpin many fixed-income mutual funds in Egypt.
Example
A bond paying a periodic coupon over several years returns the face value at maturity. If market rates rise afterwards, the bond's price in the meantime falls, because its fixed coupon is now less attractive.
Why it matters
Bonds are how longer-dated fixed income funds generate their return, and their sensitivity to rate changes is why such funds move more than money market funds do.
A common mistake
Assuming a bond cannot lose value. Held to maturity you receive the face value, but sold beforehand you receive the market price, which moves inversely to interest rates.
See it in action