As part of its medium-long-term auction scheduled for tomorrow Tuesday, the treasury will issue, among other things, 5-year and 10-year treasury bills revisable over 13 weeks.
The aim is to reassure investors by indexing long maturities to short rates.
A similar experiment was attempted last November with 5-year bonds that can be reviewed every year (We talk regarding it here). But the lift was far from spectacular.
Younes Issami, Acting Director of Monetary and Foreign Exchange Operations at Bank Al-Maghrib, predicted that these 13-week rolling issues would attract investors (We talk regarding it here).
An opinion that is not shared by market operators who believe that the only way for the treasury to issue on long maturities is to accept rate hikes, particularly on 10 years or to go to the markets international.
In addition to the revisable 5 and 10-year bonds, the Treasury will on Tuesday offer 26-week, 2-year fixed-rate and 20-year fixed-rate bonds.
