In the past week, Morocco’s financial markets showed slight signs of improvement in banking liquidity, offering a modest breath of fresh air to an otherwise cautious environment. According to the latest data from BMCE Capital, the average liquidity shortfall narrowed by 3.2%, settling at 121 billion dirhams. At the same time, Bank Al-Maghrib increased its seven-day advances by 4.7 billion dirhams, bringing the total to 53.18 billion. On the Treasury side, there was a noticeable slowdown in short-term placements, with the daily outstanding amount falling to 13.8 billion dirhams from 17 billion the previous week.
In the money market, conditions remained broadly stable. The weighted average rate held steady at 2.25%, while the MONIA index, which reflects overnight interbank rates, edged down slightly to 2.124%.
Treasury auctions during the period focused primarily on two-year maturities, which closed with a maximum rate of 2.2807%. This resulted in an eight-basis-point rise in the primary market rate. Short-term issuances, particularly the 13-week and 52-week Treasury bills, saw limited demand, falling short of the amounts offered.
Meanwhile, the secondary bond market continued to slide. The steepest decline came from 52-week notes, which dropped by 7.41 basis points. Other maturities, including 26-week, five-year, and ten-year securities, also retreated, with yields down between 4.84 and 5.92 basis points. Overall, yields ranged from 2.17% for the shortest-term notes to 3.76% for bonds with 30-year maturities.
No new bond issuances or Treasury bill offerings were announced during the week. The corporate debt market also remained inactive, with no reported transactions.
Looking ahead, Bank Al-Maghrib is expected to step up its liquidity injections, increasing weekly advances to around 53.4 billion dirhams. Short-term bond yields could face slight upward pressure, particularly against a backdrop of geopolitical uncertainty. Medium- and long-term yields, however, are likely to remain stable as markets await the anticipated launch of a new 50-year bond line.
