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The primary curve maintains its downward trend in the bond market

The pressure of significant demand in the face of a moderate supply of Treasury bills (BDT) maintains the downward trend of the primary curve in the bond market during the period from January 29 to February 04, 2021, according to Attijari Global Research ( AGR). The yields for 13-week, 52-week and 2-year maturities have indeed fallen by 3 basis points (PBS), 1 PBS and 2 PBS respectively, says AGR in its weekly note “Weekly Hebdo Rates – Fixed income” relating to the week from January 29 to February 04.

At the end of this auction session, the Treasury raises 1.5 billion dirhams in the face of a demand exceeding 6 billion dirhams, said the same source, adding that the satisfaction rate of the session is only 25%. In addition, said note indicates that the cumulative amount of treasury fundraising amounts to MAD 4.5 billion. Taking into account the announced needs of the Treasury during the current month of MAD 10.3 billion, the balance to be financed by the end of the month amounts to MAD 5.8 billion. According to AGR, primary bond rates should continue their downward trend during the remaining sessions of the first quarter of 2021, due to the drop in investors’ profitability requirements and a comfortable public finances at the start of the year.

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