Strong Investor Confidence & Financial Stability Drive Market Performance
Tanzania's financial markets in November 2025 demonstrated exceptional strength, reflecting robust liquidity and high investor confidence. Government securities auctions were significantly oversubscribed, with Treasury Bills attracting bids worth TZS 798.4 billion against a tender of TZS 352.0 billion, representing 2.3 times oversubscription. Treasury Bonds recorded even stronger demand at approximately 3.0 times oversubscription, signaling substantial appetite for risk-free government assets.
Yields edged downward, with T-bill yields declining to 6.25% from 6.27%, indicating easing government borrowing costs and improved market conditions. The government successfully raised TZS 442.7 billion domestically, with 60.5% sourced from long-term bonds, strategically reducing rollover risks and strengthening debt sustainability.
| Indicator | Value |
|---|---|
| Number of Auctions | 2 |
| Total Tender Size | TZS 352.0 billion |
| Total Bids Received | TZS 798.4 billion |
| Amount Accepted | TZS 369.2 billion |
| Oversubscription Ratio | 2.3 times |
| Weighted Average Yield | 6.25% |
| Previous Month Yield | 6.27% |
| Bond Tenor | Tender Size | Total Bids | Accepted | Weighted Avg Yield |
|---|---|---|---|---|
| 5-Year Bond | TZS 174.9 billion | — | — | 10.54% |
| 15-Year Bond | TZS 165.5 billion | — | — | 12.08% |
| Total | TZS 340.4 billion | TZS 1,008.6 billion | TZS 329.3 billion | ≈3.0× oversubscribed |
| Instrument | Amount Raised | Share (%) |
|---|---|---|
| Treasury Bonds | TZS 267.7 billion | 60.5% |
| Treasury Bills | TZS 175.0 billion | 39.5% |
| Total Domestic Financing | TZS 442.7 billion | 100% |
The Interbank Cash Market continued to function smoothly, supported by adequate shilling liquidity and effective monetary policy operations by the Bank of Tanzania.
| Indicator | Value |
|---|---|
| Total Turnover (November) | TZS 1,781.0 billion |
| Previous Month Turnover (October) | TZS 2,255.4 billion |
| Month-on-Month Change | –21.0% |
| Dominant Tenor | 7-day transactions |
| Share of 7-day Transactions | 75.7% |
| Rate Category | October 2025 | November 2025 |
|---|---|---|
| Overall IBCM Rate | 6.38% | 6.30% |
| 7-Day IBCM Rate (Average) | 6.38% | 6.30% |
| Central Bank Rate (CBR) | 5.75% | 5.75% |
| Policy Corridor | ±2 percentage points | ±2 percentage points |
| Indicator | October 2025 | November 2025 | Trend |
|---|---|---|---|
| Reverse Repo Auctions | TZS 869.2 billion | TZS 645.7 billion | ↓ Decline |
| Reduced reliance on reverse repos indicates improved liquidity and lower central bank intervention requirements | |||
Condition: High demand with falling yields
Signal: Strong investor confidence in fiscal stability and macroeconomic management
✓ Highly PositiveCondition: Adequate liquidity with stable rates
Signal: Effective monetary transmission and well-functioning liquidity framework
✓ Stable & HealthyCondition: Smooth functioning across all segments
Signal: Macro-financial stability supported by credible policy framework
✓ Excellent HealthThe government securities market and interbank cash market jointly demonstrate a stable, liquid, and well-managed financial system in Tanzania as of November 2025. Strong demand for government paper, declining yields, and stable interbank rates reflect: