Bond market rates continued their upward trend, given the Treasury's continued strong use of the domestic market during the first auction session in December 2020, analysts at Attijari Global Research (AGR) said.

Yields in the short- and medium-term segments of the primary curve were up 8 and 7 basis points, respectively for the 52-week and 2-year maturities, AGR said in its weekly note "Weekly Weekly Rate".

In the absence of the publication of the announced needs of the Treasury in December, the state treasurer wrote an amount of 5.5 billion dirhams (MMDH) in the face of a demand in clear appreciation, said the same source, recalling that the recent rise in bond rates seems to arouse the appetite of investors towards the medium compartment and long-term. He added: "In the end, the satisfaction rate of the auction session is 49%.

In terms of outlook, we expect this bullish orientation to ease slightly as external draw receipts are expected by the end of the year." Also, the increase in investor demand for treasury bills could absorb the imbalance induced by the discrepancy between the State's commitments and its estimated resources, concludes AGR.