Here are the key insights from Attijari Global Research’s “Weekly Hebdo Taux – Fixed Income” report (Oct 18-24):
Money market overview:
- Stable market conditions: The Moroccan money market remained balanced throughout the week.
- Slight rise in weekly liquidity injections: Bank Al-Maghrib (BAM) increased its weekly seven-day advances slightly, totaling 62.6 billion dirhams (MMDH).
- Reduction in repurchase agreement interventions: BAM significantly cut its repurchase interventions, providing 28.1 MMDH compared to 51.9 MMDH the previous week.
- Guaranteed loans adjustment: Guaranteed loan volumes increased to 37.3 MMDH, influenced by the expiration of four lines and the establishment of five new lines.
- Long-term intervention: Long-term interventions by BAM fell to 65.4 MMDH from 88.7 MMDH in the previous week.
- Interbank rates: These remained aligned with the benchmark rate of 2.75%, while the Moroccan Overnight Index Average (MONIA) dropped slightly by one basis point to 2.69%.
Bond market highlights:
- Treasury borrowing: The Treasury raised a modest 1 MMDH, meeting just 31% of the 3.2 MMDH investor demand.
- Year-to-date borrowing: By the end of October, gross Treasury borrowings reached 3.1 MMDH, achieving only 50% of the projected monthly target of 6.3 MMDH.
- Declining yields: Yields continued to decline in both primary and secondary bond markets, hitting their lowest levels since late 2022.
- Treasury’s strong financial position: This favorable financial outlook suggests the Treasury can meet its Q4 financing needs with minimal pressure.
- Primary rate downtrend: Primary rates are expected to remain low due to the Treasury’s restrained borrowing approach, combined with robust demand for Treasury bonds from investors.
