Tanzania Financial Markets Week to 2nd October 2026: 15-Year Bond Yield Rises to 10.7907%, Shilling Firms to TZS 2,641.42/USD

Tanzania’s financial markets closed the week to 2 October 2026 with the 15-year Treasury bond yield rising to 10.7907%, up from 10.5515% at the previous auction of the same tenor.

The Bank of Tanzania (BOT) released the figures on 5 October 2026 in its sixth Domestic Financial Markets Weekly Report, a publication it now issues every week to the market.

The report brings together foreign exchange market, money market and government securities data for the week in a single release, alongside charts of monthly and fiscal-year trends.

Government Securities

The 12.25% 15-year Treasury bond No. 696, maturing on 19 February 2041, attracted 312 bids at the auction held on 30 September 2026, of which 208 were successful.

Investors tendered TZS 504.13 billion against an offered amount of TZS 207.27 billion, an oversubscription of TZS 296.86 billion that produced a bid-to-cover ratio of 2.43x, with total allotment reaching TZS 196.51 billion.

The minimum successful price was 109.6647 and the weighted average price 110.5120, leaving the weighted average yield to maturity 23.92 basis points above the level recorded at the preceding auction of the same tenor.

Banks submitted 51.05% of subscriptions and were allotted TZS 94.66 billion, equivalent to 48.17% of the total amount allotted at the auction.

Individuals and Companies accounted for 22.87% of subscriptions and received TZS 55.71 billion, or 28.35% of the allotment, the second largest share taken at the issue.

Collective Investment Schemes submitted 12.24% of subscriptions and were allotted TZS 21.56 billion, representing 10.97% of the total, while Pension Funds took 7.18% and Insurance Companies 5.33%.

Outstanding Government Securities stood at TZS 33,407.97 billion, comprising Treasury bonds worth TZS 29,980.22 billion, or 89.74% of the total, and Treasury bills worth TZS 3,427.75 billion, or 10.26%.

Banks held the largest share of that stock at 33.62%, worth TZS 11,232.82 billion, followed by Pension Funds at 30.28%, worth TZS 10,117.52 billion.

Retail Investors held 17.69% worth TZS 5,908.68 billion, Collective Investment Schemes and other official entities 8.12% worth TZS 2,713.71 billion, and Insurance Companies 7.38% worth TZS 2,464.98 billion.

The Bank onboarded 2,639 new clients in the current fiscal year, lifting the total number of registered investors in government securities to 34,141.

The next government securities auction is scheduled for Wednesday 7 October 2026, when Treasury bills will be offered in line with the issuance calendar.

Foreign Exchange Market

The shilling appreciated 0.15% over the week to close at TZS 2,641.42 against the US dollar, from TZS 2,645.45 at the end of the previous week.

Turnover on the Interbank Foreign Exchange Market (IFEM) fell to USD 29.90 million from USD 44.80 million a week earlier, while retail foreign exchange transactions eased to USD 536.19 million from USD 542.93 million.

Trade accounted for the largest share of retail turnover at USD 130.98 million, followed by Oil & Energy at USD 78.32 million and Mining at USD 70.69 million, together representing USD 279.99 million.

The mining sector’s foreign currency purchases rose to USD 64.58 million from USD 51.62 million recorded a week earlier, extending its position as a leading source of retail demand.

Daily retail foreign exchange transactions averaged USD 129.87 million over the past month, with sales averaging USD 64.05 million and purchases averaging USD 65.82 million.

Against other currencies the shilling closed at TZS 3,493.01 to the British Pound Sterling, TZS 2,981.63 to the Euro, TZS 393.97 to the Chinese Yuan and TZS 20.35 to the Kenyan Shilling.

Money Market

The Interbank Cash Market (IBCM) 7-day Weighted Average Rate (WAR) closed the week at 6.72%, down from 6.79% recorded at the close of the previous week.

Total 7-day trading volume increased to TZS 927.45 billion from TZS 867.55 billion recorded in the preceding week, according to the report.

The 7-day weekly WAR averaged 6.52%, sitting 27 basis points above the Central Bank Rate (CBR) of 6.25% and inside the corridor of 4.75% to 7.75%.

The Bank injected TZS 272.98 billion through 7-day reverse repurchase agreements at the CBR of 6.25%, down from TZS 341.48 billion injected in the preceding week.

Bank of Tanzania Monetary Policy Framework

BOT adopted an interest rate based monetary policy framework in January 2024, replacing the monetary targeting regime under which it had previously steered reserve money as its anchor.

Within that framework the Central Bank Rate functions as the policy rate, while the 7-day interbank cash market rate is the operating target the Bank guides towards it.

The Bank relies on repurchase and reverse repurchase agreements, 35-day and 91-day Treasury bills, the statutory minimum reserve requirement, and foreign currency operations in the interbank market.

The Monetary Policy Committee raised the CBR from 5.75% to 6.25% for the third quarter of 2026, citing inflationary pressure from energy, fertilizer and transport costs.