The Mauritius Sovereign Debt Market report, published on September 22 by CareEdge Africa, reveals that total government securities outstanding climbed to Rs 535.575 billion at the end of August. This represents a monthly increase of 2.05% and a striking annual surge of 10.38%. The figures highlight a robust level of public sector borrowing activity.
Public sector emissions remained robust throughout September, with nine Treasury bill auctions organised by the Bank of Mauritius (BoM) and the government yielding a total of Rs 21 billion. The weighted average yield for these auctioned bills settled at 4.02% per annum. This follows a broader downward trend in financing costs observed over the summer.
The weighted average yield on Treasury bills dropped from 4.20% in July to 4.12% in August—a decrease of eight basis points. Similarly, Treasury bond yields eased from 4.86% to 4.79%, slipping by seven basis points. This downward trend in yields indicates a decrease in borrowing costs for the government.
When measured against the forecasted 2026 market-price GDP of Rs 800.598 billion, the total outstanding stock of government securities accounted for 66.9% at the close of August. Analysts note that while this metric gauges the weight of public securities relative to the wider economy, it does not serve as a complete measure of public debt sustainability on its own.
A detailed breakdown of the debt portfolio reveals a distinct concentration in longer-term instruments: Long-term Treasury bonds make up 49.7% (excluding certificates issued to public sector bodies), Treasury bills account for 17.4%, Treasury notes make up 16.1%, and Five-year bonds also account for 16.1%. Silver bonds represent a mere 1% of the portfolio.
Central bank activity showed a slight contraction in outstanding Bank of Mauritius titles, which fell by 1.75% from Rs 117.049 billion at the end of July to Rs 115.006 billion at the end of August. However, new BoM issuances since the beginning of September have already reached Rs 19 billion, equating to 16.52% of the August closing stock.
Across the wider commercial banking sector, the interest rate spread between average rupee deposits and rupee loans held steady at 4.24% in July, matching June’s figures. Concurrently, private bank financing extended to non-financial corporations and households expanded from Rs 622.648 billion in June to Rs 633.774 billion in July, indicating a steady growth in lending activity.
Key points
- The total outstanding stock of government securities in Mauritius accounts for 66.9% of the forecasted 2026 market-price GDP.
- The weighted average yield on Treasury bills decreased from 4.20% in July to 4.12% in August.
- Government securities outstanding climbed to Rs 535.575 billion at the end of August, a 10.38% annual surge.
