Bank of Uganda sees record Shs1.17 trillion bid in latest treasury bill auction

KAMPALA — The Bank of Uganda (BoU) has recorded overwhelming investor demand in its latest Treasury Bill auction, with total bids reaching Shs1.17 trillion against a target of Shs355 billion.

Results of Auction No. 1222, conducted on February 11, 2026, show strong appetite across all tenors, with the 364-day bill attracting the bulk of submissions.

The one-year paper drew Shs1.028 trillion in tenders, nearly four times the Shs255 billion on offer. Of these, Shs1.026 trillion came from competitive institutional bidders, reflecting heightened interest from pension funds, insurance companies and other large investors seeking to lock in returns amid a stabilising macroeconomic environment.

The 182-day bill attracted Shs95.8 billion in bids against Shs75 billion offered, while the 91-day tenor received Shs46.1 billion compared to Shs25 billion on offer.

The auction’s strong performance signals sustained liquidity in the domestic market and continued investor confidence in government securities.

Yields remained in double digits across all maturities. The 364-day bill cleared at an effective yield of 12.50 percent, while the 182-day and 91-day papers settled at 11.99 percent and 10.50 percent, respectively.

The auction comes as policymakers push to align the financial sector with the government’s Tenfold Growth Strategy, which targets expanding Uganda’s economy to $500 billion by 2040.

Speaking at a recent financial sector dialogue, BoU Governor Dr Michael Atingi-Ego said achieving the 2040 ambition would require “financing at a breakthrough scale,” supported by a regulatory framework that is firm but forward-looking.

Government officials say domestic debt instruments such as Treasury Bills are central to mobilising resources for priority sectors under the growth plan, including agro-industrialisation, tourism, mineral development — particularly oil and gas — and science, technology and innovation.

Analysts note that the high bid-to-cover ratios reflect investor confidence in Uganda’s macroeconomic stability, although they caution that maintaining fiscal discipline will be critical to sustaining appetite for government paper in the medium term.

The latest auction underscores the role of the domestic debt market in financing public investment while providing competitive returns to investors.