The Banco Nacional de Angola (BNA) auctioned Kz 285.7 billion in Obrigacoes do Tesouro (OT) across seven sessions in January 2026, with weighted-average yields compressing 45-70 basis points across the curve following the central bank’s third consecutive rate cut to 17.5% on January 14. Demand-to-cover ratios averaged 1.85x, signaling persistent institutional appetite for duration even as the easing cycle accelerates.

Recent OT Auction Results

The table below summarizes the most recent Treasury Bond (Obrigacoes do Tesouro) auction outcomes published by BODIVA and the BNA. Results cover both OTNR (Obrigacoes do Tesouro de Taxa Fixa, fixed-rate kwanza bonds) and OTX (Obrigacoes do Tesouro Indexadas, foreign-currency-indexed bonds).

Key Trends in Recent Auctions

Yield Compression Across the Curve

The BNA’s decision to cut the taxa basica (policy rate) from 18.5% to 17.5% in January 2026 – the third reduction since the July 2024 terminal rate of 19.5% – has driven a meaningful repricing of domestic fixed-income instruments. Two-year OTNR yields have fallen from approximately 17.65% in early January to 16.85% by mid-February, a compression of 80 basis points. Five-year yields have tightened by roughly 90 basis points over the same period, reflecting market expectations of further easing. For a deeper analysis of rate trajectory and forward guidance, see the BNA policy outlook.

Strong Demand at the Short End

Bid-to-cover ratios remain notably stronger for 2-year and 3-year tenors, consistently exceeding 2.0x. This pattern reflects two dynamics: domestic banks’ preference for shorter-duration assets to manage asset-liability mismatches, and institutional investors positioning for capital gains in a rate-cutting cycle. The demand-to-cover ratio tracker provides a historical view of how auction demand has evolved since 2022.

Duration Extension Remains Challenging

The 7-year and 10-year segments continue to see softer demand, with bid-to-cover ratios between 1.30x and 1.52x. Full allotment has not been achieved at the long end in any session since November 2025. With inflation at 15.7% YoY (INE, December 2025), real yields on 10-year OTNRs are approximately 4.0-4.3%, which investors apparently view as insufficient compensation for duration risk in a market where the inflation trajectory remains uncertain.

OTX Continues to Attract Premium Demand

Dollar-indexed OTX instruments command bid-to-cover ratios well above 2.0x, despite offering yields of only 7.0-7.5%. The implicit FX hedge embedded in the OTX structure is highly valued by both domestic and foreign participants. With the kwanza trading at approximately Kz 914.60/USD, investors who purchased OTX at issuance in 2023-2024 have benefited from the currency’s relative stabilization. See the OTX USD-indexed bond page for detailed terms and pricing.

Understanding OT Auction Mechanics

Angola’s Treasury Bond auctions are conducted through a competitive bidding process managed by the BNA in coordination with BODIVA, the country’s securities exchange. The Ministerio das Financas (MinFin) publishes an annual issuance plan (Plano Anual de Endividamento), updated quarterly, that outlines target volumes by instrument and tenor.

Primary dealers – a group of approximately 10-12 licensed commercial banks including BAI, BFA, BIC, and Standard Bank Angola – submit bids specifying the yield at which they are willing to purchase a given volume. The BNA then allocates bonds from the lowest yield bid upward until the target amount is filled or the cut-off yield is reached.

Key terms for interpreting auction results:

• Amount Offered (Montante Ofertado): The face value the Treasury intends to issue in a given session.
• Amount Allotted (Montante Colocado): The face value actually sold. When this is less than the amount offered, the auction is said to be “uncovered.”
• Bid-to-Cover Ratio (Racio de Cobertura): Total bids received divided by amount offered. A ratio above 2.0x is generally considered strong.
• Weighted Average Yield (Taxa Media Ponderada): The volume-weighted yield across all accepted bids.
• Cut-off Yield (Taxa de Corte): The highest yield at which bids were accepted.

Auction Calendar and Issuance Strategy

The MinFin typically schedules OT auctions on Wednesdays, with results published the following business day. The 2026 issuance plan targets approximately Kz 3.8 trillion in gross domestic debt issuance, of which OTs are expected to constitute roughly 60%, with the remainder in Treasury Bills (BTs). The government’s stated objective is to gradually extend the average maturity of outstanding domestic debt, currently around 3.2 years, toward a medium-term target of 5 years.

For upcoming auction dates and expected volumes, consult the auction calendar. To understand how these results fit within the broader yield curve, or to compare Treasury Bonds with other instruments, use the bond comparison tool.

Historical Context

Angola’s domestic bond market has grown substantially since the formalization of BODIVA’s secondary market in 2015. Annual gross OT issuance has increased from approximately Kz 1.2 trillion in 2019 to over Kz 3.5 trillion in 2025, driven by the government’s shift toward domestic financing and reduced reliance on external debt. The maturity profile has also improved, with 7-year and 10-year tenors now constituting roughly 18% of new issuance, up from less than 5% in 2020.

Credit ratings from Fitch (B-), Moody’s (B3), and S&P (B-) – all with Stable outlooks – underpin the risk framework for these instruments. For a full discussion, see the credit ratings page.