The WAEMU public securities market recorded strong demand in the week of May 12 to May 15, with 3 member states raising CFA92 billion against an initial target of CFA85 billion.
Investors submitted CFA196.67 billion in bids, giving the week a coverage rate of 231%. The estimated absorption rate was 47%, showing that treasuries received more than twice what they needed but accepted less than half of the bids. Togo’s May 15 auction, which targeted CFA35 billion, had not yet published results.
The week also showed a rare balance between short- and long-term instruments. Treasury bills accounted for 50.17% of accepted volume, or CFA46.16 billion, while Treasury bonds represented 49.83%, or CFA45.84 billion. The balance was driven by Benin, which issued only short-term bills.
Guinea-Bissau opened the week by raising CFA15 billion from CFA32.83 billion in bids, an oversubscription rate of 219%. Mali followed with CFA55 billion accepted from CFA68.17 billion in bids, above its CFA50 billion target. Benin closed the week with the strongest demand, drawing CFA95.67 billion in bids against a CFA20 billion target, but accepting only CFA22 billion.
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Next week will test the depth of regional liquidity. Mali, Côte d’Ivoire, Burkina Faso, Niger and Senegal are expected to seek CFA384.90 billion between May 18 and May 22, one of the highest weekly volumes of the year. The result will show whether investor demand can absorb several large issuers at the same time.
Key Takeaways
The week’s auctions show that liquidity is still available in the WAEMU debt market, but investors remain selective. Benin attracted large demand because it offered short maturities of 91 days and 182 days, with yields of 3.20% and 3.56%. Mali raised more than its target, but its 7-year bond received no bids, showing that investors still avoid long exposure to higher-risk sovereigns. Guinea-Bissau also faced mixed demand, with its 356-day bill fully accepted but its 3-year bond facing more competition.
The message for treasuries is clear: markets are ready to lend, but they prefer short duration, clearer repayment visibility and stronger risk compensation. The balance between bills and bonds this week does not yet mark a structural shift. It was mainly caused by Benin’s short-term issue. The real test will come next week, when 5 issuers seek almost CFA385 billion. If demand stays high, it will confirm that regional banks and investors still have cash to deploy. If coverage weakens, governments may need to adjust maturities, yields or accepted volumes.
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