Institutions are urging the Treasury to raise its rates. The treasurer refuses to abdicate on long-term bonds. Its use of innovative financing created a crowding-out effect on this investment product.
The yield curve has been on an upward trend for several months. The inflationary pressures in which the Moroccan economy is immersed inevitably push institutional investors to demand a higher return. However, this increase particularly affects the short and middle part of the curve.
At the last auction session (August 30), increases reached an average of 50% since the start of the year on the short segment, 36% on the 5-year and 9% on the 10-year. The same trend is observed on the secondary market (see graph).
While the BDT rate curve has always been driven by three elements, including the volatility of money market rates, the behavior of operators and the pace of Treasury fund raising, another factor is currently being added to it.
Less massive appeal
This is the recourse of the treasurer of the State to innovative financing, essentially including the placement of State assets in OPCIs. These made it possible to release an amount of 10 billion dirhams at the end of July 2021 and it is expected that another 10 billion will be collected by the end of the year, knowing that the Finance Law provided for 12 billion of this type of non-tax revenue.
Moreover, at the end of July, ordinary receipts are displayed in …..