The Treasury posted a strong satisfaction rate of 67% during this week’s auction session, compared to an average of 40% in the first half of 2022, according to Attijari Global Research (AGR).
“During this first auction session of September, the Treasury subscribed nearly 1.6 billion dirhams (MMDH) in the face of weak demand from investors for treasury bonds of only 2.4 billion MAD. Under these conditions, the “state treasurer shows a high satisfaction rate during this session of 67%, against an average of 40% in H1-2022”, indicates AGR in its note “Weekly Hebdo Rate-Fixed Income” relating to the week of 26 August to September 1, 2022.
This situation has thus resulted in an increase in the profitability requirements of investors on the medium and short-term compartment of the primary curve, notes AGR, noting that the yield rates for the 26-week and 2-year maturities have appreciated by 8 and 6 basis points respectively.
As for the rest of the curve, it remains stable compared to last week, according to the same source.
In addition, the subsidiary of Attijariwafa Bank underlines that the new orientation of the State towards the multiplication of innovative financing operations “would support the upward pressure on rates in 2022”.
Originally, explains AGR, an effect of crowding out demand from institutional investors in favor of these more profitable innovative investments, adding that the “fall in bids on the auction market clearly attests to this”.