Agadir – The Moroccan Treasury exceeded its initial projections this month with a total issuances reaching MAD 18.3 billion ($2 billion billion), representing an overrun of 20% compared to the MAD 15.3 billion ($1.67 billion) initially announced, according to Attijari Global Research (AGR).
The final auction of January was characterized by a notable upward adjustment in interest rates, particularly on the primary market. Yields on the 2-year maturity rose by 22 basis points, signaling increased cost of short-term borrowing for the Treasury.
This tightening trend was also evident on the secondary market, where yields increased by 8 basis points across all maturities, indicating a generalized repricing of sovereign risk along the yield curve. The primary market reflects the bonds issued directly by the Treasury.
At the same time, yields on the secondary market, where existing Treasury bonds are traded between investors, also moved upward. Rates increased by 8 basis points across all maturities, showing that the adjustment was broad-based and not limited to a specific segment of the yield curve. This simultaneous movement on both markets suggests a generalized shift in investor sentiment.
This development reflects the so-called repricing of sovereign debt, when investors reassessed the level of return they expect from holding government bonds. Such a repricing does not imply concerns about the government’s ability to repay its debt.
Instead, it points to a more cautious investment environment, likely influenced by tighter banking liquidity and uncertainty surrounding future monetary policy decisions.
During the final Treasury bond auction in January 2026, investor appetite remained concentrated on short-term instruments. Total demand during the final auction amounted to MAD 6.6 billion ($719.4 million), with more than three-quarters directed toward the 2-year maturity.
The Treasury responded selectively, retaining MAD 4.8 billion ($523.2 million), equivalent to 73% of expressed demand. AGR notes that the Treasury’s solid cash position provides it with sufficient flexibility to manage issuance volumes and pace supply on the primary market during the first quarter of 2026.
