Five-Year Bond Demand Hits 278% as DSE Trading Cools

Demand for the five-year Treasury bond surged to 278.31 percent last week. This sharp increase reflects a distinct preference for fixed income over equity exposure.

Equity turnover on the Dar es Salaam Stock Exchange fell by 13.12 percent. The drop signals a temporary pause in stock market momentum rather than a structural reversal.

Equity turnover drops sharply

Total equity turnover reached 53.05 billion shillings during the reporting period. This figure represents a significant decline from the previous week's activity levels.

The DSE All Share Index closed at 4,602.26 points. The Tanzanian Share Index also fell by 2.25 percent to 10,166.24 points.

Domestic investors accounted for 75.73 percent of all equity sales. This high share indicates that local capital remains the primary driver of market volume.

Bond subscriptions reach record levels

The reopened five-year bond attracted subscriptions worth 278.31 percent of the target amount. This figure marks a substantial increase from the previous 164.05 percent rate.

The government reduced the offer size to 142.72 billion shillings. Yields ticked down to 9.53 percent, reflecting strong competitive bidding among buyers.

Institutional trading volume expands

Secondary bond market turnover rebounded by 28.43 percent to 104.06 billion shillings. This growth occurred despite a 33.59 percent drop in the total number of trades.

The average trade size nearly doubled to 1.20 billion shillings. This shift suggests that large institutional entities are increasing their positions in government securities.