Investors snap up Uganda’s 20-year treasury bonds in latest auction

Kampala, Jan 7, 2026 — The Bank of Uganda (BoU) has recorded strong investor demand at its latest Treasury bond auction, reinforcing confidence in Uganda’s long-term fiscal outlook and sustained appetite for higher-yielding government debt.

The auction, which closed on Wednesday and settled on January 8, attracted robust participation across the 3-year, 10-year and 20-year benchmark maturities, underscoring growing interest from institutional investors seeking duration and stable returns amid global market uncertainty.

In the auction, the central bank reopened three existing bond issues, giving investors an opportunity to lock in relatively attractive yields along the government yield curve. The 10-year bond, a key benchmark for pricing longer-term debt, carried the highest coupon at 16.25 percent, while the 3-year bond offered a coupon of 15.55 percent. The 20-year bond, maturing in 2043, was issued with a coupon of 15.00 percent, reflecting a premium for long-term capital commitment.

Market participants said the strong uptake, particularly for longer-dated paper, points to confidence in macroeconomic stability and expectations that inflation and interest rates will remain broadly contained over the medium to long term.

Data from the Central Securities Depository showed healthy bid-to-cover ratios, signalling demand exceeded the amounts on offer. Pension funds, commercial banks and other institutional investors dominated bidding, highlighting the role of government securities as a preferred safe-haven asset and a key tool for asset-liability matching.

“Regular Treasury bond auctions help anchor the yield curve and provide critical pricing signals for the wider economy,” said a Kampala-based fixed-income analyst, noting that strong demand helps moderate borrowing costs for government and the private sector alike.

The auction marks one of the first major domestic debt sales of 2026 and sets an encouraging tone for Uganda’s fixed-income market as the government continues to finance infrastructure spending and manage its fiscal position. Attention now shifts to the secondary market, where investors will assess trading activity and yield movements following the auction.