Bank of Uganda targets UGX 355 billion in September treasury bill auction

The Bank of Uganda (BoU) will on Wednesday, September 10, 2025, auction Treasury Bills worth UGX 355 billion as part of its routine issuance of government securities aimed at managing liquidity and financing short-term government needs.

According to a tender notice issued under the Public Finance Management Act, 2015, the auction will cover three maturities: UGX 255 billion in 364-day bills, UGX 75 billion in 182-day bills, and UGX 25 billion in 91-day bills.

The securities will be available to both Primary Dealers (PDs)—a group of selected commercial banks including Stanbic, Standard Chartered, and Absa—and other financial institutions. Competitive bids from PDs must be at least UGX 200.1 million, while non-competitive bids through any commercial bank start as low as UGX 100,000, allowing broader participation by individuals and smaller investors.

Successful bidders will be allotted at a single price, corresponding to the lowest accepted price per 100, which matches the highest accepted yield. Settlement for the securities will take place the following day, Thursday, September 11.

BoU retains the discretion to adjust the amounts on offer or reject applications altogether, depending on market conditions.

Context
Treasury Bills are short-term debt instruments issued by the government to raise funds for budgetary support and to help regulate money supply in the economy. They are typically considered low-risk investments, attractive to both institutional and retail investors.

Uganda’s domestic debt has been rising steadily, with the government increasingly relying on Treasury Bills and Bonds to cover fiscal gaps. Analysts say this week’s auction will give an indication of investor appetite and market expectations on interest rates, particularly amid concerns about inflationary pressures and high government borrowing.