Uganda Government secures over Shs1 trillion from treasury bill auctions in November

The Government of Uganda secured Shs1.080.7 trillion from three auctions of treasury bills and bonds in November 2024.

According to the Performance of the Economy Report for November 2024 released by the Ministry of Finance, of the total amount raised, Shs414.8 billion was from T-Bills while Shs 665.8 billion was from the T-Bond auction.

“A total of Shs. 646.3 billion was used for refinancing maturing securities while Shs. 434.4 billion was used to finance other items in the budget,” the report states.

Yields (interest rates) on Treasury Bills slightly edged upwards for the 91-day, 182-day and 364 day tenors at 11.6%, 13.6%, and 14.9% in November 2024, from 10.8%, 13.4% and 14.5% in October 2024, respectively. All auctions for Treasury Bills were oversubscribed, with the average bid to cover ratio recorded at 1.3 in November 2024.

Government re-opened 3-year, 10-year and 20-year tenor bonds on the primary securities market. Yields edged upwards for all bonds in comparison to the previous issuance of similar securities. The yields for the 3-year, 10-year and 20-year tenor bonds increased to 15.80%, 16.50% and 17.50% from 15.50%, 16.25% and 16.86% respectively. The rise in yields during the month is 9 partly due to the increased borrowing requirement by Government.