Uganda Government raises Shs2.69 trillion in July treasury bond auctions

In July 2025, the Ugandan government successfully mobilized Shs2,690.6 billion through four auctions in the primary securities market, comprising three Treasury Bills (T-Bills) and one Treasury Bond (T-Bond) sale, the Ministry of Finance has reported.

Of the total funds raised, Shs1,346.24 billion came from T-Bills, while the T-Bond auction accounted for Shs1,344.39 billion. The government allocated Shs1,220.98 billion to refinance maturing securities and used the remaining Shs1,469.65 billion to support other budgetary expenditures.

Interest rates on short-term government securities showed mixed trends in July. The 91-day and 364-day T-Bills recorded declines in yields to 11.6 percent and 15.3 percent, down from 12.0 percent and 15.6 percent in June, respectively. The 182-day T-Bill yield, however, edged slightly upward to 13.2 percent from 12.8 percent the previous month. All T-Bill auctions were oversubscribed, with an average bid-to-cover ratio of 1.77, reflecting robust investor demand.

In the T-Bond market, the government issued a new 3-year tenor bond and reopened two existing bonds of 10-year and 20-year tenors. Yields across all tenors declined compared to previous auctions. The 3-year bond yield dropped to 15.55 percent from 16.50 percent, the 10-year bond fell to 17.10 percent from 17.50 percent, and the 20-year bond slightly eased to 17.90 percent from 17.95 percent.

According to the Ministry of Finance, the general reduction in yields reflects strong demand from the private sector, underlined by the higher bid-to-cover ratios recorded during July. Analysts say the strong uptake demonstrates investor confidence in government securities and underscores a healthy domestic capital market.

The July 2025 performance is seen as a positive signal for Uganda’s macroeconomic stability, as the government continues to refinance maturing debt while securing funding for critical budgetary priorities.