The Yield Curve Explained: Reading Tanzania's Interest Rates by Term
One chart that shows what the market asks to lend to the Government for 35 days up to 25 years.
Published 12 Oct 2026 · 2 min read
A yield curve plots the latest yield for each length of loan, from the shortest Treasury bill to the longest Treasury bond. It shows, in one picture, what the market asks to lend to the Government for different periods.
How UCHUMIKA builds it
Each point is the weighted average yield at the most recent auction of that tenor: 35, 91, 182 and 364-day bills, and bonds from 2 to 25 years.
Points come only from published BoT results. A tenor with no recent auction is shown with its date, so you can see how fresh each point is.
The comparison line shows the curve about a month earlier, so you can see what moved.
Reading its shape
Upward sloping: longer loans pay more than shorter ones. This is the usual shape: lenders want extra return for tying money up longer and for the risk that rates change.
Flat: short and long loans pay about the same.
Downward sloping (inverted): short loans pay more than long ones. This can happen when short-term money is tight or markets expect rates to fall.
Why it matters to an investor
It shows the extra yield you are offered for choosing a longer term.
It helps you compare a bill and a bond side by side on the same scale.
Changes over time show how borrowing conditions are moving.
A few cautions
Auctions for different tenors happen on different dates, so the points are not all from the same day.
One auction can be unusual; the trend over several auctions is more reliable.
Bills and bonds use different conventions (discount price versus coupon), so we show them on a common yield basis but small differences remain.
See today's curve on the yield curve page.
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.