BMCE Capital Global Research (BKGR) Fixed Income Weekly Report: January 10-16

2024-01-20 13:39:10

The “Fixed Income Weekly” note from BMCE Capital Global Research (BKGR) for the period from January 10 to 16 reports an average bank liquidity deficit, reaching MAD 129.7 billion.

Here are the main points of the “Fixed Income Weekly” note from BMCE Capital Global Research (BKGR) which covers the period from January 10 to 16:

Money Market :

– The average bank liquidity deficit reduced by 9.81% to 129.7 billion dirhams (billion dirhams). – Treasury investments show a clear decline with a maximum daily outstanding amount of MAD 23.4 billion recorded on January 17, 2024.

– The weighted average rate stabilizes at 3%. – Over the next period, BAM should increase its rate of intervention in the money market with the injection of MAD 51.8 billion in the form of 7-day advances.

Bond market:

– The Treasury carried out three small lifts on the 13-week, 52-week and 2-year lines for a total amount of MAD 1.1 billion at the respective limit rates of 2.83%, 2.975% and 3.259%.

– These operations induced respective reductions in the primary rates of these maturities of 7 basis points (bps), 9.3 bps and 3.4 bps.

– On the secondary market, the largest rate increases were recorded on the 26-week (+11.4 bps), 10-year (+6.8 bps) and 2-year (+5.6 bps) lines, while the 15-year line is down (-10.6 bps).

– The Treasury should continue its downward marking of rates at least until the next BAM Council.

IMD with MAP

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