UPDATE 1-Egypt cbank cuts size of T-bill offering -banker

* Cuts 91-day offer to 7 billion Egyptian pounds - banker

* No sign of foreign participation - dealer

(Adds additional banker comments)

CAIRO, Feb 7 (Reuters) - Egypt's central bank reduced the size of a Treasury bill offering on Monday, a banker said, in a sign of subdued demand for the country's debt after two weeks of political unrest.

The bank had offered 8 billion Egyptian pounds ($1.34 billion) in 91-day bills but was now only selling 7 billion pounds worth, the banker said.

Other maturities were also reduced, but the banker did not say by how much.

The original total size of the offering had been 15 billion pounds, also including 5 billion in 182-day bills and 2 billion in 273-day bills.

"I believe the (the central bank) was negotiating with the big four" state-controlled banks, a second dealer said. "I don't think it's a transparent process."

He added that he had seen no sign of foreign investors participating in the auction.

The average yield of 91-day bills sold on Monday was about 11 percent, up from 9.5 percent at the last sale before the political turmoil closed the banking system for a week, the banker said.

The central bank could not be immediately reached for comment.

($1=5.952 Egyptian Pound)

(Reporting by Patrick Werr; Editing by John Stonestreet)