Stocks Market
Moroccan Secondary Bond Market Surges Higher Amid Treasury Funding Pressure
The Moroccan secondary bond market posted a generally bullish trend from September 9 to 16, driven by rising yields across intermediate and long maturities. Treasury cash management remained cautious, with only 1.55 billion dirhams raised against a 5.5 billion target, while Bank Al-Maghrib's unchanged policy sets the stage for further rate moves fueled by funding needs.
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The Moroccan secondary bond market posted a generally bullish trend from September 9 to 16, according to BMCE Capital Global Research's latest Fixed Income Weekly note. Yields rose notably on intermediate and long tenors: the 5‑year maturity jumped 15.38 basis points, the 15‑year added 13.35 bps, the 10‑year gained 12.24 bps and the 20‑year rose 2.73 bps. A few short‑dated issues bucked the trend, with the 26‑week, 30‑year and 13‑week contracts easing 1.57, 0.37 and 0.04 bps respectively.
- Treasury auction activity was modest: the State Treasury secured just 1.55 billion dirhams (MMDH), amounting to only 28 % of the 5.5 MMDH envelope earmarked for the 52‑week maturity, which cleared at a rate of 2.2373 % – a primary‑rate drop of 1.2 bps.
- Monetary policy outlook sees Bank Al‑Maghrib on hold at its September 22 meeting, a decision already priced in by markets. Going forward, BKGR analysts expect bond‑price pressure to be driven mainly by Treasury funding constraints and cautious institutional positioning, keeping a moderate upward bias on yields.