Market Overview
In its latest Weekly Fixed Income report, the research office noted a generally bullish trend in the secondary market, with long-term bond yields rising by as much as 5 basis points.
January 6 Auction Results
During the auction held on January 6, the Treasury successfully raised 4.1 billion dirhams against a total demand of 6.6 billion dirhams, resulting in a bid-to-cover ratio of 62%.
Notably, nearly 85% of the bids were concentrated on the 2-year maturity, indicating a strong appetite among investors for short to medium-term securities.
At the close of the session, primary rates also experienced a slight uptick, with the yield on the 2-year bond increasing by 4 basis points over the week.
January Fundraising Progress
With two weeks remaining in January, the Treasury's cumulative fundraising has reached 7.5 billion dirhams, approximately half of the projected need for the month, which is set at 15.3 billion dirhams.
Market Dynamics and Future Outlook
AGR further highlights a significant decline in Treasury placements in the money market, averaging only 4 billion dirhams over the week.
This situation, combined with a high level of Treasury maturities expected in 2026, estimated at around 90 billion dirhams, prompts analysts to remain vigilant regarding potential supply pressures on the Treasury, particularly in the first quarter of 2026.