DAR ES SALAAM, June 4 -- The 20-year Treasury bond recorded its first undersubscription in nearly two years last week, signalling a notable shift in long-end demand as the Bank of Tanzania (BoT) adjusted pricing expectations.

The BoT offered 200.81bn/- in the long-dated paper at an 11.0 per cent coupon, but the auction was undersubscribed at 77.58 per cent. Investors submitted bids worth 155.78bn/-, of which 79.88bn/- was accepted, marking the first shortfall in the 20-year tenor since November 2024.

Zan Securities Advisory and Research Manager Isaac Lubeja said yesterday that this decline coincided with a reduction in the coupon rate from 12 per cent to 11.0 per cent, which likely contributed to both the lower yields and the weaker inv...