LONDON  - The cost of insuring Egyptian government bonds using Credit Default Swaps hit its highest in 16 months on Friday, partly due to turbulence in global emerging markets and concerns around the Egyptian pound.

Data from Markit showed 5-year CDS climbed to 379 basis points which was the highest since August 2017.

"The deterioration in CDS rates is probably a combination of EM turbulence in general, the higher absolute value of debt over time, and fears of pressure on/depreciation of the EGP," said the head of research at Pharos Securities Brokerage, Radwa El-Swaify.

"The risk of sovereign default and exchange rate fluctuations are inextricably linked. The depreciation of a country’s currency is often a reflection of poor economic conditions," she added.

(Reporting by Marc Jones and Yousef Saba; editing by Helen Reid and Gareth Jones) ((marc.jones@thomsonreuters.com; +44 (0)207 542 9033; Reuters Messaging: marc.jones.thomsonreuters.com@reuters.net Twitter @marcjonesrtrs))