Overview:
According to results released by the Bank of Uganda (BoU), the auction held on October 8, 2025 (Auction No. 1215) attracted UGX 705.7 billion in bids against an offer of UGX 75 billion, representing an impressive bid-to-cover ratio of 7.3 — one of the strongest in recent months.
Investor demand for Uganda’s short-term government securities surged at the latest Treasury Bills auction, with yields edging higher across all tenors, signaling a tightening money market and renewed appetite for risk-free investments.
According to results released by the Bank of Uganda (BoU), the auction held on October 8, 2025 (Auction No. 1215) attracted UGX 705.7 billion in bids against an offer of UGX 75 billion, representing an impressive bid-to-cover ratio of 7.3 — one of the strongest in recent months.
The central bank accepted a total of UGX 337.2 billion, broken down as follows:
- 91-day T-bill: UGX 5.86 billion accepted at a cut-off yield of 11.38%
- 182-day T-bill: UGX 16.88 billion accepted at a cut-off yield of 13.05%
- 364-day T-bill: UGX 314.43 billion accepted at a cut-off yield of 15.00%
The data shows a continued upward movement in short-term interest rates, reflecting the central bank’s cautious monetary stance amid inflationary pressures and tightening global financial conditions.
The 364-day paper dominated investor preference, accounting for over 93% of total accepted bids, as investors sought to lock in higher returns before potential policy rate adjustments.
Analysts attribute the strong subscription levels to a combination of liquidity in the banking sector, attractive yields, and increased participation by institutional investors.
The auction results also reflect the BoU’s ongoing efforts to manage liquidity while maintaining stability in the domestic debt market. The strong demand suggests continued confidence in government securities as a safe and stable investment vehicle amid global market volatility.
Yields on the 91-day, 182-day, and 364-day tenors closed at 11.38%, 15.00%, and 15.00%, respectively — signaling upward pressure on short-term borrowing costs for the government and potentially influencing lending rates in the wider economy.
The next Treasury securities auction is expected later this month, as the Bank of Uganda continues its regular issuance calendar to support government financing and monetary policy operations.
Market Snapshot
| Tenor | Amount Offered (UGX) | Amount Tendered (UGX) | Amount Accepted (UGX) | Cut-off Yield (%) |
|---|---|---|---|---|
| 91 Days | 25 billion | 42.99 billion | 5.86 billion | 11.38 |
| 182 Days | 25 billion | 87.36 billion | 16.88 billion | 13.05 |
| 364 Days | 25 billion | 576.52 billion | 314.43 billion | 15.00 |
Source: Bank of Uganda, Treasury Bills Auction Results No.1215 (October 8, 2025)