Moroccan Treasury Raises 4.1 Billion Dirhams in First 2026 Bond Auction Amid Slight Rate Increase

Treasury's Successful Bond Auction

On January 7, 2026, the Moroccan Treasury conducted its first bond auction of the year, securing 4.105 billion dirhams in funding through a two-year maturity bond. The accepted interest rate for this issuance was set at 2.528%, representing an increase of 2.8 basis points compared to the last marginal rate for this maturity.

Short-Term Maturities Remain Unutilized

Despite offering 600 million dirhams in 13-week maturities and 400 million dirhams in 52-week maturities, the Treasury did not receive any bids for these short-term instruments.

End of 2025 Bond Activity

At the close of 2025, the Treasury raised 3.15 billion dirhams during the auction held on December 30, focusing solely on short and medium-term maturities. On the same day, the Treasury also executed a buyback of Treasury bonds totaling 3.1 billion dirhams as part of its active domestic debt management strategy.

Market Conditions and Analyst Insights

Throughout 2025, the bond market operated within a generally controlled environment, characterized by cautious fundraising strategies, selective maturity offerings, and overall favorable banking liquidity. Interest rate tensions remained subdued, despite occasional technical adjustments in certain segments, particularly in the medium-term category.

Analysts from BMCE Capital Global Research (BKGR) project that market conditions will continue to be favorable at the start of 2026. They anticipate that the yield curve will maintain a stable profile with limited technical adjustments, supported by clear visibility regarding the Treasury's financing needs and sufficient depth in the primary market.

Expectations for Future Treasury Financing

The slight increase observed in the medium-term segment is viewed more as a temporary expectation rather than the beginning of a long-term trend. Similarly, AGR analysts believe that the Treasury will be able to secure financing without significant pressure in upcoming auctions.

This outlook is underpinned by a comfortable liquidity situation, bolstered by a high level of Treasury placements in the money market, exceeding 14 billion dirhams.

Projected Treasury Needs for January

Finally, it is noteworthy that the Treasury's projected funding needs for January are estimated to be between 15 and 15.5 billion dirhams.