The auction process

The Bank of Tanzania (BOT), acting as the government's fiscal agent, periodically auctions new Treasury bills and bonds. It announces the amount being offered, the security's tenor (term), and the auction date in advance.

Bidding

Investors submit bids specifying how much they want to invest and, for competitive bids, the yield they're willing to accept. Non-competitive bids simply accept whatever yield results from the auction, and are often the simpler route for smaller retail investors.

Allocation and yield

BOT allocates the securities starting with the most favorable bids (lowest yield demanded) until the offered amount is filled. This process sets the "market" yield for that auction, which then applies to non-competitive bidders too.

Participating as an individual

Retail investors can typically participate through a licensed commercial bank or via BOT directly, depending on the current process — minimum investment amounts and procedures are published alongside each auction announcement.

After the auction

Once allotted, bonds can generally be held to maturity for their coupon payments and principal, or in some cases traded on the secondary market (including the DSE) before maturity.