Moroccan Treasury raises only 850 million dirhams: what it signals on debt costs

The Moroccan Treasury sent a cautious signal to the domestic bond market in its latest operation, with a Moroccan Treasury auction 850 million dirhams accepted out of more than 5 billion offered by investors.

Moroccan Treasury auction 850: what to know

The auction held on Wednesday 23 September once again showed how firm the Treasury is on the cost of its borrowing. Investors submitted bids for 5.28 billion dirhams, but only 850 million were finally retained, a satisfaction ratio of around 16%.

According to data based on Bank Al-Maghrib’s official results, just one maturity was served. All other lines were rejected, even though demand was clearly there.

The only line accepted and its interest rate

The single accepted line carries a maturity date of 14 February 2028 and a coupon of 2.30%. Investors had offered 1.56 billion dirhams on this tenor. The Treasury took 850 million dirhams, or 54% of the bids.

Yield offers ranged from 2.32% to 2.52%. The Treasury set a cut-off rate at 2.3495% and a weighted average yield at 2.3348%. This is about 8 basis points above the 2.255% reference on the primary curve for this maturity.

This relatively small Moroccan Treasury auction 850 million dirhams is the lowest amount raised across the four September sessions. It underlines a clear strategy: protecting the cost of debt matters more than maximising volumes.

Why the other maturities were turned down

No bids were accepted on the 2-year maturity, which has a 13 November 2028 redemption date and a 2.45% coupon. Investors had placed 2.54 billion dirhams in bids, with yields between 2.5768% and 2.7626%.

These yields stood well above the primary curve reference of 2.445% for that tenor. The spread, between 13 and 32 basis points, was judged too high by the Treasury.

On the 13-week maturity, investors offered 1.18 billion dirhams, with rates ranging from 2.14% to 2.25%. Here again, no amount was accepted.

Rate movements and the monthly picture

Market data show that the 52-week yield stood at 2.255%, compared with 2.241% a week earlier, a weekly increase of 1.4 basis points and a cumulated rise of 5.3 basis points since January. Other maturities showed no change over the same week.

Over the full month, the Treasury raised 8.465 billion dirhams in four auctions, against a maximum announced funding need of 11 billion. This means around 77% of the monthly envelope was covered, leaving 2.535 billion dirhams still to be raised.

Why this matters for Moroccans abroad and their plans

For Moroccans living abroad who monitor the country’s financial stability before investing or returning, this Moroccan Treasury auction 850 million dirhams sends several useful signals.

• The Treasury refuses to pay significantly above its reference curve to fund the budget.
• Debt management remains focused on containing interest costs rather than maximising short-term inflows.
• Yields on short and medium-term Treasury bills are still relatively contained, with only gradual adjustments.

For those who place savings in dirhams, whether directly in Treasury products or via bank funds, these levels influence returns on deposits and fixed-income products, as well as borrowing conditions for projects in Morocco.

They also form part of the broader picture of public debt sustainability, a key indicator when assessing the country’s macroeconomic stability before launching a business, buying property or planning a permanent return.

Moroccans abroad can follow these auctions and official figures through the websites of the competent authorities, alongside information provided by their banks and asset managers in Morocco.

For more context, readers can follow Canal212 news for Moroccans abroad.

For official updates, readers can check the relevant official source.