The Bank of Zambia held Government Bond Auction No. 05/2026/BA on 26 June 2026, with results announced the same day and settlement on 29 June 2026. Yields held steady across every tenor, and demand for the short-dated 2-year and 3-year bonds rebounded strongly after the weak April auction. The 5-year tenor remained suspended.
Use our Government Bonds calculator to model your returns at the current rates.
Results at a glance
Tenor | Amount Offered | Allocated (Face Value) | Coupon Rate | Cut-off Yield |
|---|---|---|---|---|
2-Year | K520M | K530.22M | 14.25% | 14.25% |
3-Year | K600M | K756.16M | 14.50% | 14.50% |
5-Year | Not offered | - | - | - |
7-Year | K1,575M | K874.76M | 16.00% | 15.80% |
10-Year | K1,715M | K1,007.55M | 16.60% | 16.50% |
15-Year | K1,890M | K1,234.18M | 17.59% | 17.50% |
Total offered: K6.3 billion. Total bids received: K4.85 billion (face value). Total allocated: K4.40 billion (face value), K4.59 billion (cost) - roughly 70% of the amount on offer, a sharp recovery from April when only about 20% was placed.
Yields held steady
After falling across the board in April, yields were unchanged at this auction. Every cut-off yield and coupon rate matched the previous auction (04/2026/BA):
2-year: 14.25% (unchanged)
3-year: 14.50% (unchanged)
5-year: Still suspended - "not offered in this auction to realign the Government securities maturity profile in the medium term"
7-year: 15.80% cut-off yield (unchanged)
10-year: 16.50% cut-off yield (unchanged)
15-year: 17.50% cut-off yield (unchanged)
The pause suggests the rapid yield decline of recent auctions may be levelling off. For investors, that makes the timing decision simpler: the rate on a 15-year bond today is the same one offered in April.
Demand rebounded - especially at the short end
Total bids of K4.85 billion against K6.3 billion on offer was a marked improvement on April. The recovery was led by the short tenors, which were oversubscribed:
2-year: K534M bid against K520M offered - oversubscribed, with K530M allotted.
3-year: K832M bid against K600M offered - heavily oversubscribed, with K756M allotted (above the tender size).
7-year: K1,229M bid against K1,575M offered - undersubscribed, K875M allotted.
10-year: K1,008M bid against K1,715M offered - undersubscribed, all K1,008M of bids accepted.
15-year: K1,250M bid against K1,890M offered - undersubscribed, K1,234M allotted.
The Bank of Zambia accepted more than the advertised tender size on the 2-year and 3-year bonds, reflecting the strong appetite for shorter commitments. Longer tenors still drew fewer bids than were on offer, but the gap narrowed considerably compared with April.
New issues vs re-issues
This auction mixed new issues with re-issues, which behave differently:
2-year and 3-year (new issues): Brand new bond series (ISINs ZM1000007782 and ZM1000007790), issued at par. The coupon rate equals the cut-off yield - 14.25% and 14.50% - so you pay exactly K100 per script. These pay coupons every 29 June and 29 December.
7-year, 10-year, and 15-year (re-issues): These add to existing series with pre-set coupon rates (16.00%, 16.60%, and 17.59%). Because each cut-off yield is below its coupon rate, the bonds price at a premium - you pay slightly more than K100 per script but receive the higher coupon.
For re-issues, your actual return is the cut-off yield, not the coupon rate. The premium you pay at auction offsets the larger coupon payments you receive.
What this means for investors
Rates have plateaued: With yields flat for a second auction, there is less urgency to lock in fearing further drops - but also less reason to wait.
Strong returns above inflation: At 14.25% to 17.50%, yields remain comfortably above inflation, so real returns after the 20% withholding tax and 1% handling fee are still positive across all tenors.
Short-end value is crowded: Heavy demand pushed the 2-year and 3-year above their tender sizes. Longer tenors, still undersubscribed, may offer better odds of a full allotment for those willing to lock in for longer.
5-year still unavailable: Investors who want a mid-range tenor must continue to choose between the 3-year and 7-year.
For a full guide on how bonds work and how to participate: How to Invest in Government Bonds in Zambia. Compare the previous round in our April 2026 auction results, and model your own returns with the Government Bonds calculator.
