Uganda government raises Shs1.1 trillion from treasury bills, bonds in April

In April 2024, the Government of Uganda raised a total of Shs1.163.64 trillion from two Treasury Bill auctions and one treasury bond auction.

Particularly, Shs.441.13 billion was from T-Bills while Shs.722.51 billion was from the T-Bond auction.

According to the Performance of the Economy Report for April, of this, Shs.491.53 billion went towards refinancing maturing treasury instruments, while the balance of Shs.672.11 billion was used for financing other items of the budget.

This is an increase from  March 2024 when Government raised a total of Shs 982.61 billion from two treasury bill auctions and one treasury bond auction. Particularly, Shs 501.53 was from T-Bills while Shs 481.08 billion was from the T-Bond auction. S

Following the continued tightening of the monetary policy by Bank of Uganda, yields (interest rates) on treasury instruments generally edged upwards in April 2024. The annualized yields for the 364-day and 182-day tenors slightly increased to 13.4% and 12.6% from 13.3% and 12.4% recorded the previous month, respectively. Yields remained unchanged from the previous month for the 91-day tenor at 9.8% in April.

All auctions for Treasury Bills were oversubscribed in April 2024, with the average bid to cover ratio amounting to 2.06. This implied high demand for Government securities during the month.

Government issued two Treasury Bonds in April, one of 2-year tenor and the other of 10-year tenor. Yields slightly increased for both tenors compared to their previous issuance. Yields increased to 16.00% in April 2024 for the 10-year bond compared to 15.80% offered for the same tenor in the February 2024 private placement. For the 2-year bond, yields increased to 13.75% in April 2024 up from 13.20% in January 2024.