The Bank of Zambia held Government Bond Auction No. 07/2026/BA on 25 September 2026, with results announced the same day and settlement on 28 September 2026. Cut-off yields fell across every tenor compared with the August auction, and demand was concentrated in the 2-year and 3-year bonds, which drew bids of three to four times the amount on offer. The 5-year tenor remained suspended.
Use our Government Bonds calculator to model your returns at the current rates.
Auction results
Tenor | Amount Offered | Allocated (Face Value) | Coupon Rate | Cut-off Yield |
|---|---|---|---|---|
2-Year | K520M | K1,240.29M | 12.00% | 12.00% |
3-Year | K600M | K1,373.75M | 12.59% | 12.59% |
5-Year | Not offered | - | - | - |
7-Year | K1,575M | K967.28M | 16.00% | 13.75% |
10-Year | K1,715M | K987.90M | 16.60% | 14.50% |
15-Year | K1,890M | K1,256.71M | 17.59% | 15.45% |
Total offered: K6.3 billion. Total bids received: K8.63 billion (face value). Total allocated: K5.83 billion (face value), K6.30 billion (cost) - the full amount on offer, though weighted heavily towards the shorter tenors.
Yields fell across all tenors
Cut-off yields declined by between one and two percentage points compared with the previous auction (06/2026/BA, held on 21 August 2026):
Tenor | August 2026 | September 2026 |
|---|---|---|
2-Year | 13.99% | 12.00% |
3-Year | 14.09% | 12.59% |
7-Year | 14.79% | 13.75% |
10-Year | 15.50% | 14.50% |
15-Year | 16.50% | 15.45% |
The pause in June, when every yield matched the April auction, has given way to a renewed decline. The 2-year yield has moved from 14.25% in June to 13.99% in August and 12.00% in September. Treasury Bill yields are following the same direction: the 364-day bill cleared at 10.00% at the 1 October auction, down from 10.90% two weeks earlier.
Demand concentrated in short-dated bonds
Total bids of K8.63 billion exceeded the K6.3 billion on offer, but demand was unevenly spread. The 2-year bond attracted K2.13 billion in bids against K520 million offered, roughly four times the tender size, and the 3-year attracted K1.93 billion against K600 million. The Bank of Zambia allotted K1.24 billion on the 2-year and K1.37 billion on the 3-year, more than double the advertised amounts.
The longer tenors drew less interest. The 10-year received K1.30 billion in bids against K1.72 billion offered, and the 15-year K1.35 billion against K1.89 billion, leaving both undersubscribed. The 7-year received more bids than the amount on offer, but only bids at or below the 13.75% cut-off were accepted; bids between 13.89% and 17.00% were rejected, and K967 million of the K1.58 billion offered was allotted.
New issues vs re-issues
The 2-year and 3-year bonds are new issues (ISINs ZM1000007907 and ZM1000007915), issued at par. The coupon rate equals the cut-off yield - 12.00% and 12.59% - so you pay K100 for every K100 of face value. Coupons are paid every 28 March and 28 September.
The 7-year, 10-year and 15-year bonds are re-issues of existing series with fixed coupon rates of 16.00%, 16.60% and 17.59%. With cut-off yields now well below those coupons, the bonds priced at a premium: K117.51 per K100 for the 7-year, K112.59 for the 10-year and K114.35 for the 15-year. For re-issues, your effective return is the cut-off yield, not the coupon rate - the premium paid at auction offsets the larger coupon payments.
What the results mean for investors
Investors who already hold bonds are not affected: a bond keeps its coupon rate until maturity. New purchases, however, now earn less than they did at the June and August auctions.
Returns remain above inflation, which ZamStats recorded at 6.1% in September 2026. After the 20% withholding tax and 1% handling fee, the 2-year bond's 12.00% coupon yields about 9.48% a year, and the 3-year bond's 12.59% coupon about 9.95%.
With demand concentrated at the short end, competition for the 2-year and 3-year bonds is likely to remain strong. The 10-year and 15-year bonds were undersubscribed, which gives bids at competitive yields a better chance of allotment. The Bank of Zambia has also announced a new 20-year Government bond, which will form part of the benchmark bonds.
Upcoming auctions
Two further bond auctions are scheduled for the fourth quarter of 2026: 08/2026/BA on Friday 20 November and 09/2026/BA on Friday 18 December, each with an auction size of K6.3 billion. Treasury Bill auctions continue every two weeks on Thursdays. The full schedule is available on our Auction Calendar.
For a full guide on how bonds work and how to participate: How to Invest in Government Bonds in Zambia. Compare an earlier round in our June 2026 auction results, and model your own returns with the Government Bonds calculator.
