Moroccan Treasury mobilizes 6.9 billion dirhams in bond auction
The Moroccan Treasury mobilized 6.9 billion dirhams in its latest bond auction, signaling a return to active funding after a period of abstention. According to Boursenews, the issuance was dominated by 5-year maturities and occurred amid rising yield demands from investors, which BMCE Capital Global Research suggests will maintain pressure on financing conditions through October.
Treasury yields rise across primary maturities
The latest auction results reveal a clear upward trend in the rates the Treasury must pay to attract capital. Boursenews reported that 5.05 billion dirhams were mobilized on the 5-year line at a rate of 3.027%, representing a 12.1 basis point increase over the previous reference. Short-term instruments also saw gains; the 52-week line saw 1.3 billion dirhams retained at 2.355%, up 11.3 basis points.
EcoActu.ma provides a broader view of the primary market, noting that the Treasury only retained 55% of the 12.5 billion dirhams offered. The outlet reported even sharper increases in limit rates for other segments: 2.2800% for the 26-week line, up 13 basis points, and 2.6311% for the 52-week line, up 14.4 basis points. The 5-year limit rate reached 3.2296%, a 9.7 basis point climb.
This simultaneous rise across multiple segments indicates investor caution. The market is pricing in higher risks associated with the volume of public financing needs.
Secondary market yields track sovereign pressure
The tension is more pronounced in secondary trading. EcoActu.ma reports that yields have climbed across nearly all maturities, with the most significant spikes occurring in long-term bonds. The 10-year yield rose by 14.96 basis points to 3.60%, the 15-year by 10.05 basis points to 3.95%, and the 20-year by 9.34 basis points to 4.08%.
The only exception was the 26-week bond, which saw a slight decrease of 1.36 basis points. This divergence suggests that while short-term liquidity remains relatively stable, the market is demanding a higher premium for long-term sovereign risk.
BMCE Capital Global Research previously attributed a period of lower yields to the Treasury’s own cash comfort, likely bolstered by corporate tax prepayments at the end of September. That comfort has now evaporated as the Treasury returns to the market.
Bank Al-Maghrib maintains liquidity injections amid stable interbank rates
Despite the volatility in the bond market, the broader monetary environment remains relatively steady. Perspectives Med reports that Bank Al-Maghrib (BAM) maintained global injections at 152.5 billion dirhams. This liquidity was distributed via 7-day advances (57.1 billion), pension operations at 1 and 3 months (47.6 billion), and long-term guaranteed loans (47.8 billion).
| Instrument/Rate | Current Value/Rate | Change (Basis Points) |
|---|---|---|
| Treasury 5-Year (Primary) | 3.027% | +12.1 bp |
| Treasury 52-Week (Primary) | 2.355% | +11.3 bp |
| Secondary 10-Year Yield | 3.60% | +14.96 bp |
| Secondary 20-Year Yield | 4.08% | +9.34 bp |
| Interbank Average Rate | 2.25% | Stable |
October repayments drive market caution
The timing of this funding surge is critical. BMCE Capital Global Research highlights that October is concentrated with significant repayment deadlines. The intensity of market pressure will depend on how much the Treasury decides to mobilize to cover these “tombées” or maturing debts.
The trajectory of the yield curve now rests on the rhythm of future auctions and investor appetite. With the Treasury returning “in force,” as EcoActu.ma describes it, the market has shifted from a period of liquidity comfort to one of active price discovery.