The Bank of Uganda’s latest Treasury Bond auction drew overwhelming investor interest on October 1, 2025, highlighting renewed confidence in long-term government debt and the country’s macroeconomic stability.
The auction featured the re-opening of the 2-Year, 5-Year, and 15-Year benchmark bonds, attracting strong bids across all maturities. Settlement for accepted bids was scheduled for October 2, 2025.
The 15-Year Treasury Bond (ISIN: UG12K2306393, 15.800% due June 23, 2039) received tenders totaling Shs2.48 trillion, far exceeding the offered Shs430 billion.
Accepted bids amounted to Shs2.41 trillion, with a bid-to-cover ratio of 1.03 and a cut-off yield of 17.650% at a cut-off price of Shs94.103 per 100.
Analysts say the strong turnout underscores deep liquidity in the financial system and sustained demand for long-term, high-yield government securities.
The 2-Year bond (UG12J1301280, 14.125% due January 13, 2028) attracted tenders worth Shs299.28 billion against an offer of Shs230 billion, producing a bid-to-cover ratio of 1.97.
Accepted bids totaled Shs 152.03 billion at a cut-off yield of 15.750% and a cut-off price of Shs99.898.
Similarly, the 5-Year bond (UG12H0108300, 15.500% due August 1, 2030) drew Shs 391.04 billion in tenders versus Shs330 billion offered.
Accepted bids stood at Shs170.62 billion, yielding 16.200% with a cut-off price of Shs100.031, translating to a bid-to-cover ratio of 2.29.
Investor participation was strong among both competitive and non-competitive bidders. Competitive bids dominated, accounting for Shs298.30 billion of the 2-Year bond, Shs388.80 billion of the 5-Year bond, and Shs2.47 trillion of the 15-Year bond.
Non-competitive bids, while smaller, were fully accepted across all maturities, reflecting confidence and inclusivity in the market.
According to the Bank of Uganda, the results demonstrate continued trust in domestic debt instruments, supported by attractive yields and stable macroeconomic conditions.
Analysts highlighted that the 15-Year bond’s significant subscription reflects a growing institutional preference for long-duration assets amid expectations of moderate inflation and a stable exchange rate.
The strong auction outcome supports the central bank’s strategy to deepen Uganda’s secondary government securities market, maintain predictable issuance, and strengthen fiscal discipline and investment planning.
