DAR ES SALAAM, Sept. 29 -- THE Bank of Tanzania (BoT) is shifting its debt strategy toward longer-term instruments after the latest 25-year Treasury bond auction attracted overwhelming demand, with bids far exceeding the amount on offer despite a lower coupon.

The BoT will reopen the 10-year Treasury bond this Wednesday instead of the usual two-year paper, as per calendar, a move analysts said reflects efforts to extend the maturity profile of government debt while balancing investor appetite.

The central bank auctioned a 25-year government bond mid-last week with a coupon of 13.75 per cent. The rate was 125 basis points lower than the 15 per cent set on the same tenor six weeks ago and 25 basis points below the 14 per cent offered on t...