The aim of this study is comparing the performance of common stock & treasury bills, according to the central bank of Egypt and their monetary policy during the time period between “1994-2017”, using descriptive & inferential statistical methods. The Study concluded that there is a strong positive relationship between inflation rate & returns of Egyptian treasury bills, as the same relation as with floating Egyptian pound.in addition, the study found the impact of Inflation and Floating on the return of Egyptian T-bills, but don’t found this impact on the return of Egyptian common stock. Finally, the study founds the same average return but a different at variances of this return & the Coefficient of variation.

There are previous studies related to the relation between stock and treasury bills performance & inflation rate, interest rate and floating exchange rate, the first is Fama (1981) the second is Jacoby et al. (2000) provides theoretical arguments to show how inflation and treasury bills impact valuation of instruments. There are many