Bid-to-Cover Ratio Explained: What Auction Demand Tells You
One number that shows how many shillings investors bid for every shilling on offer.
Published 12 Oct 2026 · 1 min read
The bid-to-cover ratio is the quickest way to see how much appetite there was at an auction. It is a number we calculate from BoT's published figures, which is why UCHUMIKA marks it Calculated.
How it is calculated
Bid-to-cover = total amount tendered ÷ amount offered.
At the 30 September 2026 auction of bond No. 696, investors tendered TZS 504.13 billion for TZS 207.27 billion on offer: 504.13 ÷ 207.27 = 2.43.
How to read it
Above 1: investors bid more than the amount on offer. The Government can choose the best prices.
Around 1: bids roughly matched the amount on offer.
Below 1: bids did not cover the amount on offer, so the Government could not borrow the full amount at that auction.
What it can and cannot tell you
It shows demand, not value. A high ratio means many investors wanted the security at that auction.
Strong demand often comes with lower accepted yields, because the Government can take the best-priced bids. Check this against the yield, not the ratio alone.
The ratio depends on the amount offered: a small offer can look heavily covered.
Compare like with like: the same tenor over several auctions says more than one auction.
Where to see it
Every auction page shows the ratio next to the amounts. The auction results and Treasury bills dashboards chart it by tenor over time, with a line at 1 marking a fully covered auction.
This article is for education only and is not investment advice. Examples marked as illustrations are not current rates. Confirm terms in the official Bank of Tanzania notice and speak to a licensed adviser before you invest.