Bond Market: A Key Need for the Treasury as the Year Starts

The Treasury’s needs were greater at the beginning of the year than at the end of last year. Two weeks before the end of January 2025, Treasury revenues reached DH10.9 billion, covering 79% of the significant requirement of DH13.8 billion announced for the month of January 2024. During the last auction session in the bond market, the amount raised was DH3.0 billion, with investor demand of DH6.4 billion, of which almost 80% were for two years, giving a satisfaction rate of 47%.

Despite the high demand, primary interest rates on the primary market recorded a slight downward trend. In fact, the primary interest rate for the 2-year term only fell by 1 basis point in a week.

In the secondary market, declines were more significant, varying between -1 PB and -14 PBS. Given the sharp decline in treasury investments in the money market, i.e. less than DH 7 billion on average this week, as well as an increase in treasury deposits estimated for 2025E to more than DH 100 billion, compared to DH 62.9 As we reach billions of DH in 2024, we continue to monitor for possible pressure on Treasury supply in 1Q25.