Bond market rates continued their upward trend, given the continued strong domestic market use by the Treasury during the first auction session in December 2020, say Attijari Global Research (AGR) analysts.

The returns of the short and medium term segments of the primary curve have thus increased by 8 and 7 basis points, respectively for the 52-week and 2-year maturities, AGR states in its weekly note “Weekly Weekly Rate”.

In the absence of the publication of the announced requirements of the Treasury in December, the State treasurer subscribed an amount of 5.5 billion dirhams (BMDH) in the face of clearly appreciating demand, said the same source, recalling that the recent rise in bond rates seems to arouse investors' appetite for the medium and long-term compartment. And to add: “In the end, the satisfaction rate of the auction session was 49%

In terms of outlook, we expect this upward trend to weaken slightly as external draws are expected to collect by the end of the year.” Also, the increase in investor demand for treasury bills could resolve the imbalance caused by the discrepancy between the State's commitments and its estimated resources,