INSIGHTS

From T-Bills to 15-Year Bonds Which Tenor Is Right for Your Portfolio?

Should you go for T-bills or bonds? That's the wrong question. The right question is: what does your money need

May 21, 2026

One of the most common questions in the Insight Partners Africa community sounds deceptively simple: "Should I go for T-bills or bonds?"

It's the wrong question — not because it doesn't matter, but because it treats two ends of a spectrum as if they're the only options, and skips the more important question underneath: what does my money actually need to do, and over what time frame?

Zambia's government securities market offers a remarkably complete toolkit — from 91-day Treasury bills that mature in three months to 15-year bonds that lock in income for a decade and a half. Each instrument has a specific risk profile, return potential, liquidity characteristic, and tax treatment. Used correctly, they work together. Used without understanding, they either leave returns on the table or create liquidity problems at the worst possible moments.

This guide walks through every instrument currently available — from the shortest T-bill to the longest bond — with a clear description of what each one does, who it is best suited for, and exactly how it fits into a complete personal finance strategy in 2026.

The Full Menu — Every Instrument, Explained

91Days

91-Day Treasury Bill — The Cash Management Tool

Shortest available instrument · Discount pricing · Weekly auction · Highest liquidity

Indicative yield

~11.45%

Maturity

91 days (~3 months)

How returns work

Discount — buy below face value, receive full face value at maturity

Auction frequency

Weekly — highest entry frequency

Minimum investment

K1,000 face value

Tax treatment

20% WHT on discount income

The 91-day T-bill is Zambia's money market instrument for individual investors. You buy it below face value — if the yield is 11.45%, you pay approximately K97,174 for K100,000 face value, receive K100,000 at maturity, and the K2,826 difference (less 20% WHT) is your return. Simple, predictable, liquid.

Its primary role is not wealth building — it is capital preservation with yield. This is the instrument for money you expect to need within three months: an emergency fund earning more than a savings account, a holding vehicle for coupon proceeds between bond maturities, or a parking spot for new capital while you evaluate the bond market.

Advantages

Maximum liquidity
Weekly entry
Predictable maturity

Watch out

Lowest yield of all instruments
Reinvestment risk every 91 days

182/ 364 Days

182-Day and 364-Day Treasury Bills — The Yield Step-Up

Medium-term T-bills · Discount pricing · Better yield than 91-day · Still sub-12-month

Indicative yield range

~12–13%

Maturity

182 days or 364 days

How returns work

Discount — difference between purchase price and face value

Ideal for

Medium-term goals with known dates

Real return

~2.5–3.2% approx.

Key advantage

Higher yield, fewer reinvestment events

The 182-day and 364-day T-bills offer a meaningful yield step-up from the 91-day — reflecting the market's compensation for committing capital for longer. The 364-day bill, in particular, sits at the intersection of T-bills and bonds: sub-12-month, discount-priced, but carrying a yield that begins to approach the 2-year bond.

These instruments are best suited for planned expenditures with known dates. If you know school fees are due in August and it is currently February, a 182-day T-bill timed to mature just before the payment date is a more yield-efficient vehicle than a savings account — while keeping the capital completely liquid at precisely the right moment.

Advantages

Better yield than 91-day
Maturity aligns with annual planning cycles
Moderate liquidity via secondary market

Watch out

Still lower real return than any bond tenor

2YBond

2-Year Government Bond — The Entry-Level Fixed Income Rung

Shortest bond tenor · Semi-annual coupons · Non-benchmark · New issue each auction

Indicative yield

~14.25%

Maturity

2 years

Coupon payments

Every 182 days

Benchmark status

Non-benchmark

Net yield

~11.29%

Real return

~4.2%

The 2-year bond is where T-bills end and proper fixed income investing begins. The yield jump from a 364-day T-bill to a 2-year bond is significant, and the mechanism changes from discount pricing to regular coupon payments every six months.

For first-time bond investors, the 2-year is a natural starting point. The commitment is short enough to be psychologically comfortable. The coupon flow provides visible, tangible evidence that the investment is working.

Advantages

Ideal entry-level bond
Regular coupon income begins
Short commitment horizon

Watch out

Lowest yield in the bond universe
Frequent reinvestment decisions required

3YBond

3-Year Government Bond — The Transition Instrument

Demoted from benchmark in April 2026 · Still actively issued · Small yield premium over 2-year

Indicative yield

~14.50%

Maturity

3 years

Benchmark status

Demoted in April 2026

Coupon payments

Every 182 days

Net yield

~11.49%

Real return

~4.4%

The 3-year bond sits in an interesting transitional position in 2026. It was demoted from benchmark status in the March BOZ reforms — meaning the BOZ will no longer reopen it repeatedly to build outstanding volume.

Despite this, the 3-year remains a useful instrument for investors with medium-term goals — those saving toward a target 2 to 4 years out. The key caution: because secondary market liquidity is declining post-demotion, treat the 3-year as a hold-to-maturity instrument more firmly than before.

Advantages

Useful for medium-term goals
Small yield premium over 2-year

Watch out

Less liquid post-April 2026 demotion
Benchmark demotion reduces future issuance volume

7YBenchmark

7-Year Benchmark Bond — The New Core of the Market

Elevated to benchmark April 2026 · BOZ building toward K10bn outstanding · Deepening liquidity

Indicative yield

~15.80%

Maturity

7 years

Benchmark status

New benchmark

Coupon payments

Every 182 days

Net yield

~12.52%

Real return

~5.36%

The 7-year is the most strategically significant bond in Zambia's 2026 market. Its elevation to benchmark status signals where the BOZ is concentrating market-building effort — and that means deepening liquidity, more active secondary market trading, and growing institutional interest as outstanding volume builds toward K10 billion.

The 7-year also replaces the suspended 5-year as the natural core income bond for investors who want a meaningful yield premium without extending to a decade or more.

Advantages

New benchmark — growing liquidity
Strong real return
Replaces the suspended 5-year

Watch out

Understand reopening premium and accrued interest before bidding
7-year commitment

10YBenchmark

10-Year Benchmark Bond — The Established Yield Anchor

Long-standing benchmark · Most actively traded · Highest institutional demand outside 15-year

Indicative yield

~16.50%

Maturity

10 years

Benchmark status

Continuous benchmark

Coupon payments

Every 182 days

Net yield

~13.07%

Real return

~5.87%

The 10-year is the workhorse of Zambia's domestic bond market — the instrument that pension funds, insurance companies, and commercial banks use as their primary long-term fixed income holding. It has maintained benchmark status through every structural reform and carries the deepest secondary market liquidity of any GRZ bond tenor.

For individual investors, the 10-year bond represents the fullest expression of the yield premium available in Zambia's current rate environment.

Advantages

Best secondary market liquidity
Strong real return
Locks in high yield for a decade

Watch out

Significant duration risk if rates rise sharply
Requires genuine long horizon

15YBenchmark

15-Year Benchmark Bond — The Long Conviction Instrument

Newly elevated benchmark · Highest available yield · For investors with genuine 15-year horizon

Indicative yield

~17.50%

Maturity

15 years

Benchmark status

New benchmark

Coupon payments

Every 182 days

Net yield

~13.86%

Real return

~6.61%

The 15-year bond is the highest-yielding government security available to Zambian retail investors — and in February 2026, it attracted the most extraordinary demand of any instrument in any auction in the country's history.

For domestic retail investors, the 15-year requires genuine conviction — not just about Zambia's macroeconomic direction, but about your own financial situation for the next decade and a half.

Advantages

Highest real return in the market
Locks in today's yields before further compression
30 coupon payments

Watch out

Maximum duration risk
Genuine 15-year horizon required

The Complete Side-by-Side Comparison

Instrument	Term	Indicative Yield	Net After Tax	Real Return	Best Suited For
91-Day T-Bill	3 months	~11.45%	~9.16%	~2.21%	Emergency fund, cash parking, coupon reinvestment
182-Day T-Bill	6 months	~12.0%	~9.60%	~2.63%	Semi-annual planned expenses, short holding period
364-Day T-Bill	12 months	~13.0%	~10.40%	~3.38%	Annual goals, bridging between bond maturities
2-Year Bond	2 years	~14.25%	~11.29%	~4.20%	Entry-level bond, first fixed income investment
3-Year Bond	3 years	~14.50%	~11.49%	~4.39%	Medium-term goals, university fees, planned purchases
7-Year Bond ★	7 years	~15.80%	~12.52%	~5.36%	Core bond portfolio position, replaces suspended 5-year
10-Year Bond ★	10 years	~16.50%	~13.07%	~5.87%	Long-term wealth building, most liquid bond tenor
15-Year Bond ★	15 years	~17.50%	~13.86%	~6.61%	Retirement savings, maximum income lock-in, long-horizon investors

★ Benchmark bond — BOZ actively building secondary market liquidity. Indicative yields from 2026 auction data. Real returns use Fisher equation: ((1+Net)÷(1+0.068))−1. For illustration; actual auction yields vary.

The Decision Framework — Matching Instrument to Purpose

The right instrument is not the one with the highest yield. It is the one whose maturity, income structure, and liquidity profile match what your money needs to do. These questions will guide you to the right answer faster than any yield comparison.

Do you need this money within the next 3 months?

91-Day T-Bill. Nothing else. This money should not be in any longer instrument.

Do you have a specific expense 6–12 months from now?

182-Day or 364-Day T-Bill, timed to mature 1–2 weeks before the expense date.

Are you investing for the first time in bonds?

2-Year Bond — start here. The commitment is manageable, the coupon income arrives in six months, and the mechanics become familiar at relatively low stakes.

Do you have a goal 2–4 years out?

3-Year Bond with maturity timed to your goal date, supplemented by 91-day T-bills for interim liquidity.

Do you want the best balance of yield and flexibility?

7-Year Benchmark Bond. This is the natural core holding for investors who can commit 7 years but don't want to extend to a full decade.

Are you building long-term wealth with no near-term liquidity need?

10-Year and/or 15-Year Bond. Use both together if your horizon allows, weighted toward the 10-year if you want the liquidity option.

Should you mix instruments across tenors?

Almost always yes. The most robust strategy is a ladder — holding instruments across 2-3 different tenor buckets simultaneously.

Three Investors, Three Portfolios

Scenario A

Kondwani, 29, First-Time Investor with K30,000

Kondwani has K30,000 he wants to invest. He has a K5,000 emergency fund already in a savings account. He doesn't have a specific goal for the K30,000 within the next two years, but he might want some of it in three years for a car purchase.

Portfolio: K10,000 in a 2-year bond, K10,000 in a 3-year bond, and K10,000 in a 7-year benchmark bond. Blended real return: approximately 4.9%.

Why not all in the 7-year? Because Kondwani hasn't yet held a bond through a coupon cycle. The shorter rungs build experience and give him access points if life changes direction.

Scenario B

Mwansa, 44, Building Retirement Income with K500,000

Mwansa is 44 and wants to maximise income over the next 15 years before retirement. She has adequate liquidity in other accounts. The K500,000 is purely for long-term wealth building.

Portfolio: K50,000 in 91-day T-bills as a rolling buffer, K150,000 in the 10-year bond, and K300,000 in the 15-year bond.

Annual real purchasing power gain on her K500,000 portfolio: approximately K31,000 — compounding silently year after year.

Scenario C

Chipo, 35, Managing a School Fees Cycle with K80,000

Chipo has three children. School fees are due every January and July — K15,000 each time, K30,000 per year. She has K80,000 to invest and wants it to generate those fees without touching principal.

Portfolio: K60,000 in a 2-year bond and K20,000 in 91-day T-bills on a rolling basis.

K0 in long bonds — Chipo's priority is income matching, not yield maximisation. When children finish school, she rebuilds the ladder into longer tenors.

The One Principle That Ties It All Together

Every instrument in Zambia's government securities market was designed with a purpose. T-bills were designed for liquidity management. Short bonds were designed for medium-term income. Long bonds were designed for yield maximisation over extended horizons.

Core Principle

"The question is never 'which instrument is best?' The question is always 'which instrument is best for this money, at this stage of my financial life, toward this specific goal?'"

In 2026, Zambia's government securities market is offering retail investors something genuinely unusual: a complete spectrum of instruments, from 91 days to 15 years, all with positive real after-tax returns above inflation — for the first time since before the debt crisis.

The investors who understand each instrument — its mechanics, its tax treatment, its place in a portfolio, and when to use it — are the ones who will look back in five years and realise they made the most of this moment.

You now have what you need to be one of them.

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