The latest monthly report by the Bank of Tanzania shows that Treasury bill and Treasury bond auctions were significantly oversubscribed in November, reflecting strong investor appetite for lending to the government.
According to the report, the central bank conducted two Treasury bill auctions in November 2025 with a combined tender size of TZS 352 billion. The auctions were heavily oversubscribed, attracting bids worth TZS 798.4 billion, of which TZS 369.2 billion were accepted.
Treasury bills are short-term government securities with maturities of less than one year. They allow individuals and institutions to lend money to the government for a short period and earn a modest return. The bills are issued with maturities of 35, 91, 182, or 364 days, depending on the option selected and approved by the Bank.
While shorter-dated Treasury bills, particularly those with maturities between 35 and 182 days, have historically struggled to attract sufficient participation, investor interest has surged since July 2025. On December 3, 2025, the Bank floated another Treasury bill tender worth approximately TZS 341 billion, which was oversubscribed by TZS 166 billion. Similarly, on January 7, 2026, Treasury bills valued at TZS 174.9 billion were offered, with bids exceeding the offer by TZS 139.5 billion.
The Bank of Tanzania also reported strong demand for Treasury bonds. Auctions for the 5-year and 15-year bonds in November, with tender sizes of TZS 174.9 billion and TZS 165.5 billion, respectively, were oversubscribed. Total bids reached TZS 1.0086 trillion, while TZS 329.3 billion were accepted.
Treasury bonds are long-term debt instruments with maturities exceeding one year and pay interest on a semiannual basis. They typically attract strong investor demand due to their relatively higher yields. In December, the Bank conducted another auction for a 20-year bond, which was oversubscribed by TZS 577 billion.
Yields on Treasury bills edged down marginally to 6.25 percent in November 2025 from 6.27 percent, while yields on Treasury bonds softened to 10.54 percent for the 5-year instrument and 12.08 percent for the 15-year bond, reflecting strong investor demand.
Following the election and the unrest that ensued, analysts have been closely monitoring trends in the financial markets. So far, confidence in government securities remains strong, as investors view them as offering guaranteed returns with lower risk compared to other sectors of the economy.
In contrast, activity in the stock market has weakened. As of January 8, 2026, market turnover has declined notably, with foreign investors shifting to net selling. Local investors, however, remain active buyers, particularly in banking and financial sector stocks, which continue to dominate trading activity.
