DAR ES SALAAM, Sept. 23 -- THE fixed-income market faces a key test as the Bank of Tanzania launches a 25-year Treasury bond with a sharply reduced coupon, a move that could reshape investor appetite for long-dated government securities amid the central banks easing drive.

The BoT will auction 264.31bn/- through the competitive window and 29.37bn/- via the non-competitive window.

What has drawn attention is the coupon rate of 13.75 per cent, a marked drop from recent issuances.

Earlier this month, a 20-year bond was issued at 14 per cent, while the 25-year paper sold in August carried a 15 per cent coupon.

Alpha Capitals Geofrey Kamugisha said the 125-basis-point rate cut over two months highlights the central banks commitment to lowe...